Please help me to obtain sales revenue and sales price. Thank you! (I also tried as a sales price 245.25 and it is not correct)
During year 1 , Adams Manufacturing Company Incurred $125,000,000 of research and development (R\&D) costs to create a long-IIfe 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 materlals, direct labor, and overhead) are expected to be $58 per unit. Packaging, shipplng, and sales commissions are expected to be $14 per unit. Adams expects to sell 2,500,000 batterles before new research renders the battery design technologically obsolete. Durlng year 1 , Adams made 442,000 batterles and sold 401,000 of them. Requlred a. Identlfy 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 financlal statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Adams desires to earn a profit margln that Is equal to 25 percent of the total cost of developing, making, and distributing the batterles. d. Prepare a GAAP-based Income statement for year 1. Use the sales price developed In Requirement c. Answer is complete but not entirely correct. 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, Adams Manufacturing Company Incurred $125,000,000 of research and development (R\&D) costs to create a long-llfe 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 materlals, direct labor, and overhead) are expected to be $58 per unlt. Packaging, shipping, and sales commissions are expected to be $14 per unlt. Adams expects to sell 2,500,000 batterles before new research renders the battery design technologically obsolete. During year 1 , Adams made 442,000 batterles and sold 401,000 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 financlal statements that are prepared In accordance with GAAP. c. Determine the sales price assuming that Adams desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and distributing the batterles. d. Prepare a GAAP-based income statement for year 1. Use the sales price developed In Requirement c. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Determine the sales price assuming that Adams desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and distributing the batteries. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places
