Problem 24-5AC Allocation of Joint costs Lo C3 The folowing information applies to the questions displayed below] Georgia Orch ards 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 ORCHARDSs Income Statement For Year Ended December 31, 2017 No. 1No. 2 Sales (by grade No. 1: 400,000 Ibs. $1.20/1b No. 2: 400,000 Ibs. $0.80/1b No. 3: 800,000 Ibs. e s0.25/1b Total sales $480,000 $320,000 $ 200,000 $1,000-000 Costs Tree pruning and care s0.25/Ib Picking, sorting, and grading e $0.20/Ib Delivery costs Total costs 100,000 100,000200,000 80,00080,000 160,000 400,000 320,000 15, 600 15,600 38-10069-300 789,300 $284,400 $124,400 $(198,100) $210,700 195,600 195,600398,100 Net income (loss) In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equat per pound. The company's delivery cost records show that $31,200 of the $69,300 relates to crating the No. 1an peaches and hauling them to the buyer. The remaining $38100 of delivery costs is for crating the No.3 peaches hauling them to the cannery hauling them to the cannery Problem 24-5AB Part 2 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basi intermediate calculations.) GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2018 No. 1 No. 2 No. 3 Combined Sales $ 480,000 S 320,000 $ 200,000 $ 1,000,000 Costs Tree pruning and care Total costs 01 0 $480,000 $ 320,000 $ 200,000 $ 1,000,000