help Question:79During 2011, Gallo Manufacturing Company incurred $90,000,000 ofresearch and development (R&D) costs to create a long-life battery touse in computers. In accordance with FASB standards, the entireR&D cost was recognized as an expense in 2011. Manufacturing costs(direct materials, direct labor, and overhead) are expected to be $260per unit. Packaging, shipping, and sales commissions are expected tobe $50 per unit. Gallo expects to sell 2,000,000 batteries before newresearch renders the battery design technologically obsolete. During2011, Gallo made 440,000 batteries and sold 400,000 of them.a. Identify the upstream and downstream costs.b. Determine the 2011 amount of cost of goods sold and the endinginventory balance.

break down the solution step by step for both parts of the question. a. Identify the Upstream and…

Answered: Question:79 During 2011, Gallo…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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all I need is cost of goods sold, it's not 36,704,000
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