Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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: 204,000 Ibs. @ $2.20/lb $448, 800 No. 2: 204,000 lbs. @ $1.80/lb $367,200 No. 3: 1,360,000 lbs. @ $0.15/lb $ 204,000 Total sales $1,020,000 Costs Tree pruning and care @ $0.35/Ib 71,400 71,400 476,000 618, 800 Picking, sorting, and grading @ $0.10/Ib 20,400 20,400 136,000 176, 800 Delivery costs 15,400 15,400 37,900 68, 700 Total costs 107,200 107, 200 649,900 864,300 Net income (loss) $341, 600 $260,000 $(445, 900) $ 155,700 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 $30,800 of the $68,700 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,900 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. 2. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Factory Accounts

Authors: John Whitmore

1st Edition

0367494825, 9780367494827

More Books

Students also viewed these Accounting questions

Question

=+For a different audience? In another tone of voice?

Answered: 1 week ago

Question

=+Can it illicit audience participation?

Answered: 1 week ago

Question

=+Create an open dialogue among users?

Answered: 1 week ago