Allocating Joint Costs Using the Weighted Average Method Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish-free pe than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, y Informstion on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc., uses the weighted a 10rat joint cost is 515,000 Required: 1. Allocate the joint cost to the four grades of peaches using the weighted average method. Round your allocation percentages (wotes The joint cost allocation does not equal \$15,000 due to rounding.) 2. What if the factory found that Grade A peaches were being valued less by customers and decided to decrease the weight factor foi places and round the allocated costs to the nearest dollar. categories. Grade A are large blemish-free peaches that can be sold to gourmet fruit sellers. Grade B peaches are smaller and may be slightl are of lower grade than peaches for slices, yet still food grade for canning. me that Sunny Lane, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grade. ge method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. iustomers and decided to decrease the weight factor for Grade A peaches to 2.0 ? How would that affect the allocation of cost to Grade A peaches? Ho be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even sma four grades of peaches: Grade A peaches? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages to four decimal