Costs Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company is concerned about the net loss on its No. 3 peaches. GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 300,000 Ibs. @ $1.50/lb $450,000 No. 2: 300,000 Ibs. @ $1.00/lb $300,000 No. 3: 750,000 Ibs. @ $0.25/lb $ 187,500 Total sales $937,500 Tree pruning and care @ $0.30/lb Picking, sorting, and grading @ $0.15/1b Delivery costs Total costs Net income (loss) 90,000 90,000 225,000 405,000 45,000 45,000 112,500 202,500 15,000 15,000 37,500 67,500 150,000 150,000 375,000 675,000 $300,000 $150,000 $(187,500) $262,500 In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The company's delivery cost records show that $30,000 of the $67,500 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,500 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. Required: 1. 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 delivery costs on the basis of the relative sales value of each grade. (Do not round intermediate calculations.) Tree Pruning and Care: Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Nos. Numerator Denominator % of Total No. 1 No. 2 No. 3 Totals Picking, Sorting, and Grading: Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Nos. Numerator Denominator % of Total No. 1 No. 2 No. 3 Totals Delivery: Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Nos. Numerator Denominator % of Total No. 1 No. 2 No. 3 Totals 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. (Do not round intermediate calculations.) GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No. 2 No. 3 Combined Costs Total costs