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: 408,000 Ibs. @ $1.20/lb	$	489,600
No. 2: 408,000 Ibs. @ $0.80/lb				$	326,400
No. 3: 680,000 Ibs. @ $0.30/lb							$	204,000
Total sales											$	1,020,000
Costs
Tree pruning and care @ $0.25/Ib		102,000			102,000			170,000				374,000
Picking, sorting, and grading @ $0.20/Ib		81,600			81,600			136,000				299,200
Delivery costs		15,200			15,200			37,700				68,100
Total costs		198,800			198,800			343,700				741,300
Net income (loss)	$	290,800		$	127,600		$	(139,700	)		$	278,700

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 $30,400 of the $68,100 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,700 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

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
	$0	$0	$0	$0