# 2 is wrong i have tried to solve it and i dont know what iam doing wrong i just need help with 2

Allocating Joint Costs Using the Sales-Value-at-Split-Off Method

Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish-free peaches that can be sold to gourmet fruit sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food grade for canning.

Information on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc., uses the sales-value-at-split-off method of joint cost allocation and has provided the following information about the four grades of peaches:

Grades	Pounds	Price at Split-Off (per lb.)
Grade A	1,600	$6.00
Grade B	4,000	2.00
Slices	9,000	1.30
Pureed	5,400	0.80
Total	20,000

Total joint cost is $15,000.

Required:

1. Allocate the joint cost to the four grades of peaches using the sales-value-at-split-off method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar.

	Joint Cost
Grades	Allocation
Grade A	4283
Grade B	3570
Slices	5220
Pureed	1928
Total	15001

2. What if the price at split-off of Grade B peaches increased to $1.60 per pound? How would that affect the allocation of cost to Grade B peaches? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar.

	Joint Cost
Grades	Allocation
Grade A	9279
Grade B	2474
Slices	2010
Pureed	1237
Total	$fill in the blank 10