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: 198,000 Ibs. @ $2.10/lb	$	415,800
No. 2: 198,000 Ibs. @ $1.90/lb				$	376,200
No. 3: 990,000 Ibs. @ $0.20/lb							$	198,000
Total sales											$	990,000
Costs
Tree pruning and care @ $0.30/Ib		59,400			59,400			297,000				415,800
Picking, sorting, and grading @ $0.20/Ib		39,600			39,600			198,000				277,200
Delivery costs		15,700			15,700			38,200				69,600
Total costs		114,700			114,700			533,200				762,600
Net income (loss)	$	301,100		$	261,500		$	(335,200	)		$	227,400

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 $31,400 of the $69,600 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,200 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.)

...puisi UILS SITUWIRUSL UncULUIIS VISUS VIUC NUJIJ LULHICCOquus VINCULICO. Juuru LICUCIVIL Required information of 2 Tree Pruning and Care: Grade Allocation Base x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Nos. No. 1 0 No. 2 0 No. 3 0 0 ok Totals 0 Picking, Sorting, and Grading: Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost ces Nos. Numerator Denominator % of Total No. 1 0 No. 2 0 No. 3 0 0 0 Allocation Base Totals Delivery: Grade Nos. No. 1 No. 2 x Indirect Cost Percent of Allocation Base Numerator Denominator % of Total Allocated Cost 0 0 No. 3 Totals Prev 1 2 of 2 Next > NOV