Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, th 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: 420,000 Ibs. @ $1.20/1b $504,000 No. 2: 420,000 Ibs. @ $0.80/lb $336,000 No. 3: 840,000 Ibs. @ $0.25/16 $ 210,000 Total sales $1,650,000 Costs Tree pruning and care @ $0.35/16 147,000 147,000 294,000 588,000 Picking, sorting, and grading @ $0.10/Ib 42,000 42,000 84,000 168,000 Delivery costs 16,100 16,100 38,600 79,800 Total costs 205, 100 205, 100 416,600 826,800 Net income (loss) $ 298,900 $130,900 $(206,600) $ 223,200 In preparing this statement, the company allocated joint costs among the grades on a physical basi as an equal and per pound. The company's delivery cost records show that $32.200 of the $70,800 relates to crating the No. 1 and N- peaches and hauling them to the buyer. The remaining $38,600 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 cost: amounts directly identifiable with each grade. Then allocate any shared delivery costs on the basis of the relative sales value grade. (Do not round intermediate calculations.) Grade Tree Pruning and Care: Allocation Base Nos. No. 1 x Indirect Cost Percent of Allocation Base Numerator Denominator % of Total Allocated Cost 0 0 No. 2 No3 Totals 0 0 0 Picking, Sorting, and Grading: Grade Allocation Base Percent of Allocation Base Numerator Denominator % of Total x Indirect Cost Allocated Cost Nos