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: 408,000 Ibs. @ $1.20/lb	$	489,600
No. 2: 408,000 Ibs. @ $0.80/lb				$	326,400
No. 3: 680,000 Ibs. @ $0.30/lb							$	204,000
Total sales											$	1,020,000
Costs
Tree pruning and care @ $0.25/Ib		102,000			102,000			170,000				374,000
Picking, sorting, and grading @ $0.20/Ib		81,600			81,600			136,000				299,200
Delivery costs		15,200			15,200			37,700				68,100
Total costs		198,800			198,800			343,700				741,300
Net income (loss)	$	290,800		$	127,600		$	(139,700	)		$	278,700

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 $30,400 of the $68,100 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,700 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.)

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 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