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 Ibs. @ $1.80/lb				$	367,200
No. 3: 1,360,000 Ibs. @ $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 companys 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.

1A- 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.)

2B-

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