During year 1, Perez Manufacturing Company incurred \\( \\$ 76,500,000 \\) of research and development (R\\&D) costs to create a long life battery to use in computers, In accordance with FASB standards, the entire R\\&D cost was recognized as an expense in year 1. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be \\( \\$ 76 \\) per unit. Packaging, shipping, and sales commissions are expected to be \\( \\$ 6 \\) per unit. Perez expects to sell \\( 1,700,000 \\) batteries before new research renders the battery design technologically obsolete. During year 1, Perez made 441,000 batteries and sold 393,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Perez desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and distributing the botteries. d. Prepare a GAMP.based income statement for year 1 . Use the sales price developed in Requirement \\( c \\). Complete this question by entering your answers in the tabs below. Prepare a GAAP-based income statement for year 1: Use the sales price developed in Requirement \\( C \\). Wote: Do not round intermediate calculations. d. Prepare a GAAPbased income statement for year 1. Use the sales price developed in Requirement \\( c \\). Complete this question by entering your answers in the tabs below. Prepare a GAAP-based income statement for year 1. Use the sales price developed in Requirement \\( c \\). Note: Do not round intermediate calculations. During year 1, Perez Manufacturing Company incurred \\( \\$ 76,500,000 \\) of research and development (R\\&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R\\&D cost was recognized as an expense in year 1 . Manufacturing costs (direct materials, direct labor, and overhead) are expected to be \\( \\$ 76 \\) per unit. Packaging, shipping, and sales commissions are expected to be \\( \\$ 6 \\) per unit. Perez expects to sell \\( 1,700,000 \\) batteries before new research renders the battery design technologically obsolete. During year 1, Perez made 441,000 batteries and sold 393,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of gocds sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP c. Determine the sales price assuming that Perez desires to earn a profit margin that is equal to 25 percent of the total cosf of developing, making, and distributing the batteries. d. Prepare a GAAP-based income statement for year 1 . Use the sales price developed in Requirement \\( c \\). Complete this question by entering your answers in the tabs below. Determine the sales price assuming that Perez desires to earn a profit margin that is equal to 25 percent of the toral cost of developing, making, and distributing the batteries. Note: Do not round intermed ate calculations. Round your tinal answer to 2 decimal places. During year t, Perez Manufacturing Company incuried \\( \\$ 76,500,000 \\) of research and development (R\\&D) costs to create a long fife battery to use in computers, In accordance with FASB standards, the entire R\\&D cost was recognired as an expense in year 1 . Manufacturing costs fdirect materiak, direct labor, and overhead) are expected to be \\( \\$ 76 \\) per unit. Packaging, shipping, and sales corvmissions are expected to be \\( \\$ 6 \\) per unit. Petez expects to sell \\( 1,700,000 \\) batteries before new rescarch renders the battery design technologically obsolete. During year 1, Perez made 441,000 batteries and sold 393,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of gooch sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Perez desires to earn a profit margin that is equal to 25 percent of the fotal cost of developing. making, and distributing the batteries. d. Prepare a GAMP based income statement for year 1 Use the sales pice developed in Requirement \\( C \\) Complete this question by entering vour answers in the tabs below. Determine the year 1 amount of cost of goods sold and the ending inventory balance that woild appear on the financial staternents that are prepared in accordance with GAMP
