Vernon inc. makes a smartphone case that includes a battery that extends the operating life of an iphone. the manufacturing costs per unit include $18 direct materials, $21 direct labor, and $9 manufacturing overhead. these costs are based on a production and sales volume of 5,000 units. advertising costs amounted to $28,000. research and development cost for the materials used in the phone cases amounted $31,000. companywide administrative costs amounted to $45,000. fashion design costs amounted to $26,000. vernon’s management team established the sales price at 150 percent of gaap-defined product cost. required determine the total amount of upstream costs. determine the total amount of downstream cost. determine the total amount of midstream cost. determine the sales price per unit. prepare a gaap-based income statement.

Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available. two-thirds of the work related to $15,000 of cash received in advance was performed this period. the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired. wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.