Hello, I have finished this section A already but stuck on B, C & D. The answers I entered are incorrect. Can you explain how to complete this?

A Company incurred $77,400,000 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 2017. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $62 per unit. Packaging, shipping, and sales commissions are expected to be $14 per unit. Stuart expects to sell 1,800,000 batteries before new research renders the battery design technologically obsolete. During 2017, they made 445,000 batteries and sold 401,000 of them.

The company incurred $77,400,000 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 2017. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $62 per unit. Packaging, shipping, and sales commissions are expected to be $14 per unit. Stuart expects to sell 1,800,000 batteries before new research renders the battery design technologically obsolete. During 2017, Stuart made 445,000 batteries and sold 401,000 of them.

Required

1. Hello, I am finished this section already, but stuck on B,C & D. The answers I entered are incorrect. Can you explain how to complete this?

2. Determine the 2017 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.

3. Determine the sales price assuming that Stuart desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and distributing the batteries.

4. Prepare a GAAP-based income statement for 2017. Use the sales price developed in Requirement c.

Required

1. Identify the upstream and downstream costs.

2. Determine the 2017 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.

3. Determine the sales price assuming that Stuart desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and distributing the batteries.

4. Prepare a GAAP-based income statement for 2017. Use the sales price developed in Requirement c.

• Required B
• Required C
• Required D

Determine the 2017 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.

B:

Cost of goods sold	$27,590,000
Ending inventory	$27,280,000

C:

• Required C
• Required D

Determine the sales price assuming that Stuart desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and distributing the batteries. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Sales price

$158.60

D:

• Required D

Prepare a GAAP-based income statement for 2017. Use the sales price developed in Requirement c. (Do not round intermediate calculations.)

STUART MANUFACTURING COMPANY
Income Statement
	0
Net income (loss)	$0