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Required information (The following information applies to the questions displayed below.) 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, 2017 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1. 247,500 Ibs. $1.80/lb $445,500 No. 2: 247,500 lbs. $1.40/1b $346,500 No. 31 990,000 Ibs. $0.20/1b $198.000 Total sales $990,000 Costs Tree pruning and care e $0.40/Ib 99,000 99,000 396,000 594,000 Picking, sorting, and grading @ $0.10/Ib 24,750 24,750 99,000 148,500 Delivery costs 15,400 15,400 38,000 68,800 Total costs 139, 150 139, 150 533,000 811,300 Niet income (loss) $306,350 $207,350 $(335,000) $178,700 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 $30,800 of the $68,800 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,000 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. 1. Prepare reports showing cost allocations on a sales value basis to the three grades of peaches. Separate the delivery costs into the amounts directly identifiable with each grade. Then allocate any shared delivery costs on the basis of the relative sales value of each grade. (Do not round Intermediate calculations.) Tree Pruning and Car Grade Allocation Base Nos Sales value No. 1 No. 2 No. 3 Totals Picking, Sorting, and Grading: Grade Allocation Base Nos Sales value Percent of Allocation Base Indirect Cont Allocated Cost Numerator Denominator of Total 445,500 990,000 45.00$ 594,000 $ 267 300 346,500 990,000 35,00 594,000 207 900 198.000 990,000 20.00 594,000 118,800 100.00 $ 594,000 No, 1 Percent of Allocation Base X Indirect Cont Allocated cost Numerator Denominator of Total 445,500 990.000 45.00 $ 148,500S 56,825 346,500 990,000 35.00 148,500 51,975 198,000 990,000 20.00 148,500 29.700 100.00 $ 148,500 No. 2 No. 3 Totals Delivery Grade Nos No. 1 NO 2 Allocation Base Sales value Percent of Allocation and x Indirect Cost Altecated cost Numerator Denominator % of Total 445,500 792,000 56 25$ 30,800 $ 17 325 346,500 792.000 43.75 30.800 13.475 100.00 No 13 Totals 39,000 58,800 S 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 2018 No. 1 No. 2 No 3 Combined Costs Total costs 0 0 0 0 S S 0 S 0 S 0