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BORK Alocating Joint Conts Using the weighted Average Method Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories Grade A

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BORK Alocating Joint Conts Using the weighted Average Method Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories Grade A are large bih tree peaches that can be sold to gourmet fruit sellers. Grade 8 peaches are smaller and may be slightly out of proportion. These we packed in boxes and sold to grocery stores. Peaches to be silend te canned peaches are even smaller than Grade 5 peaches and have blemishes, Peaches to be pureed for use in sauces are of lower grade thon penches for shoes, yet in food gradutor canning Information on a recent purchase of 20,000 pounds of peaches is as follows: Asume that Sunny Leon, Inc., we the weighted average method of you contication and has assigned the following weights to the four grades of peaches Weight Grades Pounds Factor Grade A 1,400 3.0 Grade 4,000 2.0 Slices 9,010 Pureed 5,600 Total 20,000 0.5 1.0 Total joint cost is $18,000 Allocate the Joint cost to the four grades of peaches using the weighted average method, Round your allocation percentages to four decimal places and round he allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A Grade B Slices Pureed Total (Note: The joint cost allocation does not equal $18,000 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 for Grade Apeaches to 2.07 How would that affect the allocation of cost to Grade Apeaches? How would it affect the allocation of cost to the remaining grades) Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A Grades Slices Pureed Total (Note: The joint cost a location does not equal $18,000 due to rounding)

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