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: 247,500 Ibs. No. 2: 247,500 Ibs. No. 3: 990,000 Ibs. Total sales $1.80/1b $1.40/1b $0.20/lb $445,500 $346,500 $ 198,000 $990,000 Costs Tree pruning and care $0.40/Ib Picking, sorting, and grading $0.10/Ib Delivery costs Total costs 99,000 99,000 396,000 594,000 99,000 148,500 68,800 24,750 24,750 15,400 15,400 38,000 9,150 139,150 533,000 811,30 Net income (loss) $306,350 $207,350 $(335,000) $178,700 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 $68,800 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,000 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 Care Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Numerator | Denominator | % of Total No. 1 No. 2 No. 3 0 Totals Picking, Sorting, and Grading Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Numerator Denominator | % of Total No. 1 No. 2 No. 3 0 Totals Delivery: Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Numerator Denominator %Of Total No. 1 No. 2 No. 3 Totals