C, Assignrriierlts:ACCl"lOZ-E x x [m ChapterQ-Homework x 'l\\ ChapterHAIlc-calion of x _ X (- C I G) ezlo.mheducalioncomfhmtpx ' l E Problem 9-5AB Allocation ofjoint costs L0 C3 [me foirowrrig informatlon applies to the questions dismayed below} Georgia Orchards produced a good crop of peaches this year. After preparing 1he following income statement. the company believes it should have given its No. 3 peaches to charity and saved its efforts GEORGIA ORCHARDS Income Stalement For Year Ended December 31, 2015 No. 1 No. 2 No.3 Combined Sales [by grade] No.1 204,000 lbs. -@ $2.30r'lb $469,200 No. 2: 204.000 lbs. @ $1.70i'lb $346300 No. 3 1,020,000 lbs. @ $0.20!\"; $ 204,000 To'ial sales $020900 Costs Tree pruning and care @ $0.40i'lb 81.600 81.600 408.000 571.200 Picking. sorting. and grading @ $010flb 20.400 20.400 102,000 142.800 Delivery costs 15.800 15.800 38.300 69.900 To1a| costs 111800 117.800 548.300 783.900 Netincome tios5] $ 351.400 $229000 5 {344.300} $ 236.100 In preparing this statement.1he company allocatedjoint costs among the grades on a physical basis as an equal amount per pound. The company's delivery cost records show that $31500 ofihe $69,900 relates to crating the No. 1 and No. 2 peaches and hauling them to We buyer. The remaining $38,300 ofdelivery costs is for crating the No. 3 peaches and hauling them to the cannery