Allocating Joint Costs Using the Sales-value-at-Split-Off Method Orchard Fresh, Inc., purchases apples from local orchards and 50 ts them into four categories. Grade A are large blemish-tree apples that can be sold to gourmet fruit zeilers. Grade 3 apples are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. ripples for sices are even smaler thar Grade Dapples and have blemishes. Apples for applesauce are of lower grade than apples for Sices, yet stil suitable for cenning, Information on a recent purchase of 20,000 peurds of apples is as follows: Assume that Othard Fresh, Inc, uses the sales-value-at-split-uff rrethod of joint cust allocation and has provided the following information about the four grades of apples: Price at Split- OFF (oer Grades Pounds lb.) $1.00 Grade 1,700 1.00 Grade 5,000 0.50 Slices 5.200 0.10 Applesauce Total 20 20.000 Total joint costs $19,000. Required: 1. Allocate the joint cost to the four grades of apples using the sales-value-at-split-ott method. Round your allocation percentages to four decimal places and round the allocated costs to the neares: dollar Joint Cost Grades Allocation Grada 6,800 X 4,500 X Slias Applesso Total 2. What if the price at split clcr Grade B apples increased to $1.20 per pound? How would that affect the allocation of cost to Grade 8 apples? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages ta four decimal places and round the allocated costs to the nas est dolor Joint Cost Grades Allocation Grade $ Grade Slices Tatal