Allocating Joint Costs Using the Sales-Value-at-Split-Crt Method Orchard Fresh, Inc, purchases apples from local orchards and sorts them into four categorles. Grade A are large blemah-free apples that can be sold to gourmet finut seliers, Grade B apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores, Apples for stices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than appies for slices, yet sta suitable for canning. Information on a recent purchase of 20,000 pounds of apples is as follows: Assume that Orchard fresh, Inc, uses the sales-value-at-split-off method of foint cont. aliocation and has provided the following information about the four gndes of apples: Total joint cost is $18,000. Required: 1. Allocate the joint cost to the four grades of apples 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. 1. Allocate the foint cost to the four grodes of apples using the sales-value-at-split-off method, Round your allocation percentages to four decimal places and round the allocated costs to the nearest doliar. 2. What if the price ot split-off of Grade B apples increased to $1.20 per pound? How would that affect the allocation of cost to Grade B apples? 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 dollat