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Allocating Joirt Costs Using the Physical Units Method Sunny Lane, Inc, purchases peaches from local orchards and sorts them into four categorles. Grade A are
Allocating Joirt Costs Using the Physical Units Method Sunny Lane, Inc, purchases peaches from local orchards and sorts them into four categorles. Grade A are large blemish-free peaches that can be sold to gourmet frult: saliers. Grade 8 peaches are smaller and may be slightly out of proportion. These are pscked in boxes and sold to grocery stores. Peaches to be silced for canned pesches are even smaller than Grade B peaches and have blemishes, Peaches to be pureed for use in sauces are of lower orade than peaches for silicet, yet stall food grade foe canning. Information on a recent purchase of 20,000 pounds of peaches is as follows: Total joint cost is $16,000. Required: 1. Allocate the joint cost to the four grades of pesches using the phivical units method. 1. Aliocate the joint cost to the four grades of peaches using the physical units method. 2. Allocate the joint cost to the four grades of peaches by finding the average joint cost per pound and muitiplying it by the number of pounds in the grade. Round the average cost answer to the nearest cent. Average cost =5 per pound. 3. What if there were 1,800 pounds of Grade A peaches and 3,600 pounds of Grade ba How would that affect the aliocation of cost to these bwo grades? How would it affect the allocatian of cost to the remaining common grades? 3. What if there were 1,800 pounds of Grade A peaches and 3,600 pounds of Grade B? How would that affect the aflocation of cost to these tye grades? Haw would it affect the allocetson of cost to the remaining common grades
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