Required information Problem 22-5AC Allocation of Jolnt 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 Sales (by grade) No. 1: 360,880 Ibs. $1.2e/lb $432,880 No. 2: 360,880 Ibs. $e.se/lb $288,888 No. 3: 1,280, eee Ibs. @ $0.15/1b $ 188,888 Total sales $9ee,eee Costs Tree pruning and care @ $0.28/Ib 72,000 72,000 240,000 384.ee Picking, sorting, and grading $e.es/Ib 28,888 28,888 96,000 153,6ee Delivery costs 16,480 16,488 38,900 71,78e Total costs 117,200 117,288 374,900 6e9,300 Net income (loss) $314,889 $170,888 $(194,988) $290,7ee 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 $32.800 of the $71,700 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer . The remaining $38.900 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. Problem 22-5AC Part 1 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 x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Nos Problem 22-5AC Part 1 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 Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Tree Pruning and Care: Grade Allocation Base Nos. No. 1 No. 2 No. 3 0 0 0 0 Totals Picking. Sorting, and Grading: Grade Allocation Base x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Nos. No. 1 0 0 0 0 0 No. 2 No. 3 Totals Delivery: Grade Nos No. 1 No. 2 Allocation Base x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 0 No. 3 Totals $432,000 $288,000 $ 188,888 $9ee, eee Sales (by grade) No. 1: 360,000 lbs. @ $1.2e/lb No. 2: 360,000 Ibs. $e.se/lb No. 3: 1,200, eee Ibs. $e. 15/1b Total sales Costs Tree pruning and care @ $2.20/Ib Picking, sorting, and grading @ $0.98/Ib Delivery costs Total costs Net income (loss) 72,880 72,600 248,888 384, eee 28,888 28,888 96,eee 153,6ee 16,480 16,400 38,900 71,7ee 117,280 117,280 374,900 6e9,3ee $314,889 $170,800 $(194,980) $290,700 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 $32.800 of the $71,700 relates to crating the No. 1 and No.2 peaches and hauling them to the buyer. The remaining $38.900 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. Problem 22.5AB Part 2 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. (Do not round Intermediate calculations.) GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2018 No. 1 No. 2 No. 3 Combined Costs Total costs 0 0 0 $ 0 0 S $ 0 $ 0