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. 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 Nos. x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total No. 1 No. 2 0 0 0 0 0 No. 3 Totals Picking, Sorting, and Grading: 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 Totals 0 Allocation Base x Indirect Cost Allocated Cost Delivery: Grade Nos. No. 1 No. 2 Percent of Allocation Base Numerator Denominator % of Total 0 0 No. 3 Totals