Allocating Joint Costs Using the Physical Units Method Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemish-free apples that can be sold to gourmet fruit sellers. Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Apples for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 22,000 pounds of apples is as follows: Grades Pounds Grade A 1,540 Grade B 5,500 Slices 8,800 Applesauce 6,160 Total 22,000 Total joint cost is $16,500. Required: 1. Allocate the joint cost to the four grades of apples using the physical units method. Grades Grade A Grade B Joint Cost Allocation