59 [The following information applies to the questions displayed below.] California Orchards reports the following sales data for the year ended December 31. Grade of Walnuts Sales Number 1 $ 459,000 Number 2 306,000 255,000 Number 3 Total $ 1,020,000 The company incurred the following joint costs for the year. Tree pruning and care $ 714,000 107,100 Pickup, sorting, and grading Required: 1. Use the value basis to allocate joint costs to the three grades of walnuts on the basis of sales value. Allocation of joint costs on the basis of sales values. Grade Allocation Base x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator Numbers % of Total Number 1 0 Number 2 0 Number 3 0 0 Totals 0 2. Compute gross profit for each of the three grades of walnuts. Assume, cost of goods sold consists only of the joint costs. Grade Gross Profit Number 1 Number 2 Number 3 Total the la T Cit