22.7

Georgla 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. 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 Intermedlate calculations.)