Bloom Orchards produced a good crop of peaches this year. After pre ment, the company believes it should have given its No. 3 peaches to charity a 2. Did the plalt Maiiag preparing the following in income state. BLOOM gratement 31,2011 No.3 Combined sts Income Statement For Year Ended December 31, 201 No. 2 No. I Sales (by grade) $450,000 $300,000 $150,000 No. 3: 750.000 lbs.@ $0.20/b .. Total sales $900.000 60,000 60,000 150,000 36,00036,000 90,000 9,000 105,000 105,000 262,500 Costs 270,000 Tree pruning and care $0.20/lb Picking, sorting, and grading @ $0.12lb Delivery costs $0.03/lb Total costs. A 9,000 22,500 40,500 $345,000 $195,000 $(112.500) $427,500 In preparing this statement, the company allocated joint costs among the grades on a physical h 0 500 Net profit (loss).. basis as an equal amount per pound. The company's delivery cost records show that $30,000 of the $40.500a crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $10,500 costs is for crating the No. 3 peaches and hauling them to the cannery. relates to of deliv Required Prepare reports showing cost allocations on a sales value basis to the three grades of peaches. Separate the delivery costs into the amounts directly identifiable with each grade. Then allocate any shared de livery costs on the basis of the relative sales value of each grade. 1. 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. Analysis Component 3. Do you think delivery costs fit the definition of a jgint cst? F