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 $31,2013$

No$.1$ No$.2$ No$.3$ Combined

Sales $($by grade$)$

No$.1$: $440,000$ Ibs. @ $$1\mathrm{.}20/$lb $ $528,000$

No$.2$: $440,000$ Ibs. @ $$0\mathrm{.}80/$lb $ $352,000$

No$.3$: $1,100,000$ Ibs. @ $$0\mathrm{.}20/$lb $ $220,000$

Total sales $ $1,100,000$

Costs

Tree pruning and care @ $$0\mathrm{.}25/$Ib $110,000110,000275,000495,000$

Picking, sorting, and grading @ $$0\mathrm{.}20/$Ib $88,00088,000220,000396,000$

Delivery costs $16,60016,60039,10072,300$

Total costs $214,600214,600534,100963,300$

Net income $($loss$)$ $ $313,400$ $ $137,400$ $ $(314,100)$ $ $136,700$

In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The company$$s delivery cost records show that $$33,200$ of the $$72,300$ relates to crating the No$.1$ and No$.2$ peaches and hauling them to the buyer. The remaining $$39,100$ of delivery costs is for crating the No$.3$ peaches and hauling them to the cannery. 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.$)$