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: 380,000 Ibs. @ $1.50/lb	$	570,000
No. 2: 380,000 Ibs. @ $0.90/lb				$	342,000
No. 3: 1,140,000 Ibs. @ $0.20/lb							$	228,000
Total sales											$	1,140,000
Costs
Tree pruning and care @ $0.30/Ib		114,000			114,000			342,000				570,000
Picking, sorting, and grading @ $0.10/Ib		38,000			38,000			114,000				190,000
Delivery costs		16,800			16,800			39,300				72,900
Total costs		168,800			168,800			495,300				832,900
Net income (loss)	$	401,200		$	173,200		$	(267,300	)		$	307,100

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 $33,600 of the $72,900 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $39,300 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.)