managerial accounting

Project Description:

hello, i need help to solve c and d from this problem. thank you

during 2011, gallo manufacturing company incurred $123,200,000 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 2011. manufacturing costs (direct materials, direct labor, and overhead) are expected to be $263 per unit. packaging, shipping, and sales commissions are expected to be $52 per unit. gallo expects to sell 2,800,000 batteries before new research renders the battery design technologically obsolete. during 2011, gallo made 439,000 batteries and sold 402,000 of them.

b. determine the amount of cost of goods sold and the ending inventory balance for the year 2011.

cost of goods sold $105,726,000
ending inventory $ 9,731,000

c. determine the sales price assuming that gallo desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and distributing the batteries. (round your answer to 2 decimal places.

sales price $

d. prepare an income statement for 2011. use the sales price developed in part c. (amounts to be deducted and loss amounts should be indicated with minus sign. do not round your intermediate calculations.

gallo manufacturing company
income statement

select one:
selling expenses, research and development, sales commissions, cost of goods sold, sales revenue


select one:
selling expenses, cost of goods sold, sales revenue, research and development, sales commissions


select one:
net income (loss), gross margin (loss)


select one:
sales revenue, cost of goods sold, cash, research and development, selling expenses


select one:
cost of goods sold, sales revenue, selling expenses, cash, research and development


select one:
net income (loss), gross income, gross profit

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