Alocating Joint Costs Using the Phynical Un/s Nethod Orchard Fresh, inc, purchases apples from local orchards and sorts them into four categories, Grade A are large blemish-free apples-that can be sold to gourmet fruit sellers, Grade B apples are smaller and may be slighty out of proportion. These are packed in boves and sold to grocery stores. Appies for slices are even smaller than Grade B apples and have blemishes. Apples for applesauce are of lower grade than apples for slices, yet still suitable for canning. Information on a recent purchase of 20,000 poundr of apples is as follows: Totat joint cost is $18,000. Required: 1. Allocate the foint cost to the four grades of apples using the physical units method. 2. Allocate the joint cost to the four grades of apples by finding the average foint 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 2,000 pounds of -Grade A apples and 4,600 pounds of Grade B? How would that affect the allocation of cost to these two grades? How would it affect the allocation of cost to the remaining common grades