In preparing the statement, the company allocated joint costs among the grades on a physical basis as an equal amounts per pound. The company's delivery cost records show that's $32,000 of the $75,500 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,500 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. Prepare reports showing cost allocations on the sales value basis to the three grades of peaches. Separate delivery cost into the amounts directly identifiable with each grade then allocate Anisha delivery cost on the basis of the relative sales value of each grade. (Do not round intermediate calculations)

Check my work Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company believes it should have given its No. 3 peaches to charity and saved its efforts. GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2013 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 408,000 lbs. @ $1.20/lb $489,600 No. 2: 408,000 lbs. @ $0.80/lb $326,400 No. 3: 1,020,000 lbs. @ $0.20/lb $ 204,000 Total sales $1,020,000 Costs Tree pruning and care @ $0.30/lb 122,400 122,400 306,000 550,800 Picking, sorting, and grading @ $0.10/lb 40,800 40,800 102,000 183,600 Delivery costs 16,000 16,000 38,500 70,500 Total costs 179,200 179,200 446,500 804,900 Net income (loss) $ 310,400 $ 147,200 $(242,500) $ 215,100