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a.

Required information [The following information applies to the questions displayed below.] Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company is concerned about the net loss on its No. 3 peaches. GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 198,000 lbs. @ $2.10/lb $415,800 No. 2: 198,000 Ibs. @ $1.90/lb $376,200 No. 3: 990,000 Ibs. @ $0.20/lb $ 198,000 Total sales $990,000 Costs Tree pruning and care @ $0.30/lb 59,400 59,400 297,000 415,800 Picking, sorting, and grading @ $0.20/lb 39,600 39,600 198,000 277,200 Delivery costs 15,700 15,700 38,200 69,600 Total costs 114,700 114,700 533,200 762,600 Net income (loss) $301,100 $261,500 $(335,200) $227,400 In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The company's delivery cost records show that $31,400 of the $69,600 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,200 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. (Do not round intermediate calculations.) 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. (Do not round intermediate calculations.) GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No. 2 No. 3 Combined Costs Total costs