Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please make sure all columns are visible! many times i had it done where the answers were cropped off and i couldn't see the rest.

please make sure all columns are visible! many times i had it done where the answers were cropped off and i couldn't see the rest. thanks image text in transcribed
image text in transcribed
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: 440,000 lbs. @ $1.20/1b $528,000 No. 2: 440,000 Ibs @ $0.80/lb $352,000 No. 3: 1,100,000 lbs. @ $0.20/1b $ 220,000 Total sales $1,100,000 Costs Tree pruning and care @ $0.25/Ib 110,000 110,000 275,000 495,000 Picking, sorting, and grading @ $0.20/1b 88,000 88,000 220,000 396,000 Delivery costs 16,600 16,600 39,100 72,300 Total costs 214,600 214,600 534,100 963, 300 Net income (loss) $313,400 $137,400 $(314,100) $ 136,700 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 $33,200 of the $72,300 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $39,100 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery Tree Pruning and Care: Grade Allocation Base x Indirect Cost Allocated Cost Nos Percent of Allocation Base Numerator Denominator % of Total 0 0 No 1 No. 2 No. 3 Totals Picking, Sorting, and Grading: Grade Allocation Base 0 0 0 x Indirect Cost Allocated Cost Nos Percent of Allocation Base Numerator Denominator % of Total No 1 0 No. 2 0 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 Cost Allocated Cost 0 0 No 3 Total 8

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Definitive Guide To Blockchain For Accounting And Business

Authors: Saurav K. Dutta

1st Edition

1789738687, 9781789738681

More Books

Students also viewed these Accounting questions

Question

What makes Zipcar an attractive employer for which to work?

Answered: 1 week ago

Question

Evaluate Figure 6-9; what other questions would you ask, and why?

Answered: 1 week ago