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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
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 peaches to charity and saved its efforts.
GEORGIA ORCHARDS
Income Statement
For Year Ended December
No No No Combined
Sales by grade
No: Ibs. @ $lb $
No: Ibs. @ $lb $
No: Ibs. @ $lb $
Total sales $
Costs
Tree pruning and care @ $Ib
Picking, sorting, and grading @ $Ib
Delivery costs
Total costs
Net income loss $ $ $ $
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 $ of the $ relates to crating the No and No peaches and hauling them to the buyer. The remaining $ of delivery costs is for crating the No peaches and hauling them to the cannery. Using your answers to part prepare an income statement using the joint costs allocated on a sales value basis. Do not round intermediate calculations.
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