Georgia Orchards produced a good crop of peaches this year. After preparing the following income 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 Cot Sales (by grade) No. 1: 255,000 lbs. @ $1.80/1b $ 459,000 No. 2: 255,000 lbs. @ $1.20/1b $306,080 No. 3: 1,275,000 lbs. @ $0.20/1b $ 255,000 Total sales $1,0 Costs Tree pruning and care @ $0.40/Ib 102,000 102,000 510,000 7 Picking, sorting, and grading @ $0.06/Ib 15,300 15,308 76,500 1 Delivery costs 16,900 16,900 39,400 Total costs 134,200 134,200 625,900 89 Net income (loss) $324,800 $171,800 $(370,900) $ 10 In preparing this statement, the company allocated joint costs among the grades on a physical basis per pound. The company's delivery cost records show that $33,800 of the $73,200 relates to crating peaches and hauling them to the buyer . The remaining $39.400 of delivery costs is for crating the No hauling them to the cannery. Required: 1. Prepare reports showing cost allocations on a sales value basis to the three grades of peaches. Separate amounts directly identifiable with each grade. Then allocate any shared delivery costs on the basis of the re grade. (Do not round intermediate calculations.) Tree Pruning and Care: Required information The following information applies to the questions displayed below) 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: 255,000 lbs. @ $1.80/lb $459,eee No. 2: 255,000 lbs. 51.20/lb $396,000 No. 3: 1,275,000 lbs. @ $0.20/1b $ 255, eee Total sales $1,020,000 Costs Tree pruning and care $0.40/Ib 102,000 102,000 510,000 714,000 Picking, sorting, and grading se.06/Ib 15,300 15,300 76,500 107, 100 Delivery costs 16,90 16,900 39,400 73,200 Total costs 134,200 134,200 625.900 894, 39 Net Income (loss) $324,800 $171,800 $(370,900) $ 125,700 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 $33.800 of the $73.200 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $39,400 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 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 Cares G Allocation Band Nos Sales value Indirect cont Percent of Allocation Base Numerator Denominator of Total Allocated Cost Required: 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.) x Indirect Cost Allocated Cost Tree Pruning and Care: Grade Allocation Base Nos Sales value No 1 $ 459,000 No. 2 No. 3 Totals Picking. Sorting, and Grading: Grade Allocation Base Nos Percent of Allocation Base Numerator Denominator % of Total 459,000 1.020,000 45.00 0 0 0 0 x Indirect Cost Percent of Allocation Base Numerator Denominator % of Total Allocated Cost No. 1 0 No. 2 0 0 0 No. 3 Totals Delivery: Grade Nos No 1 No. 2 Allocation Base Percent of Allocation Base Numerator Denominator % of Total x Indirect Cast Allocated Cast 0 0 No 3 Totals