Required Information Problem 22-5AC Allocation of joint costs LO C3 [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 Salon (by grade) No. 11 247,500 lbs. $1.80/lb $445,500 No. 2: 247,500 lbs. $1.40/1b $346,500 No. 31 792,000 Ibe. $0.25/1b S 198,000 Total sales $990,000 Coute Tree pruning and care $0.30/1b 24,250 74,250 237,600 386,100 Picking, sorting, and grading $0.20/1b 49,500 49.500 158, 400 257, 400 Delivery costo 15,000 15,000 37,600 67P 600 Total costs 138,750 1381750 433,600 711100 Net Income (loos) $306, 750 $207,750 $(235,600) $278,900 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 $30,000 of the $67.600 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,600 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.) x Indirect CoAllocblod Cost Troe Pruning and Care Grade Allocation Base Nos Sales value No. 1 $ 445,500 No. 2 346,500 No.3 198,000 Total $ 990,000 Pickinu. Sorting and Grading Grado Allocation Base Nos Percent of Allocation Numerator Denominator 445,500 990,000 346,500 990,000 198.000 990.000 % of Total 45.00 35.00 386,100 386,100 386,100 2000 100.00 386,100 x Indirect cout Porcent of Allocation 800 Numerator Denominator % of Total Allocated Cost No. 1 0 0 No. 2 No 3 Totals Dellvery: G 0 0 Allocation Berat Allocation w.India Allcata Cout