Allocating Joint Costs Using the Physical Units Method Sunny Lane, ine, purchases peaches from local orchards and sorts them imto four categories, Grade A are large blemish-free peaches that can be sold to gourmet frute. sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boves and sold to procery stores, Peaches to be sliced for canned peaches are even smalier than Grade B peaches and have blemishes. Pesches to be puroed for use in sauces are of lower grade than peaches for silkes, yet stit food grade for canning: intortation on a recent purchase of 28,000 pounds of peaches is as follows: Total jomt cout as 121,000 tregustred1 1. Wiocate the wint coat to ine fout grades of pesches waing the physical units methad. 2. Allocate the joint cost to the four grades of pesches by finding the average joint cost per pound and multiplying it by the number of pounds in the grade. Round the average cost answer to the nearest cent. Average cost =$ per pound. 3. What if there were 2,800 pounds of Grade A peaches and 6,440 peunds of Grade B? How would that affect the aliecation of cost to these two grades? How would it affect the allocation of cost to the remaining common grades