Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company believes it should have given its No. 3 peaches to charity and saved its efforts.

GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2015
		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
Costs
Tree pruning and care @ $0.30/Ib		90,000			90,000			225,000				405,000
Picking, sorting, and grading @ $0.15/Ib		45,000			45,000			112,500				202,500
Delivery costs		15,000			15,000			37,500				67,500
Total costs		150,000			150,000			375,000				675,000
Net income (loss)	$	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 companys 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 Nos Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Numerator Denominator % of Total 0 0 0 Totals Picking, sorting, and grading: Grade Nos Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Numerator Denominator % of Total 0 0 0 Totals Delivery: Grade Nos Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Numerator Denominator % of Total 0 0 0 Totals