Required information Problem 9-5AA (Algo) Allocation of joint costs LO C2 [The following information applies to the questions displayed below.] California Orchards reports the following sales data for the year ended December 31. Grade of Walnuts Number 1 Number 2 Number 3 Total Sales $ 570,000 342,000 228,000 $ 1,140,000 The company incurred the following joint costs for the year. Tree pruning and care Pickup, sorting, and grading $ 570,000 190,000 Problem 9-5AA (Algo) Part 1 Required: 1. Use the value basis to allocate joint costs to the three grades of walnuts on the basis of sales value. * Indirect Cost Allocated Cost Allocation of joint costs on the basis of sales values. Grade Allocation Base Percent of Allocation Base Numbers Numerator Denominator % of Total Number 1 Number 2 Number 3 0 0 0 0 Totals 0 0 2. Compute gross profit for each of the three grades of walnuts. Assume, cost of goods sold consists only of the joint costs. Answer is complete but not entirely correct. Grade Number 1 Number 2 Number 3 Gross Profit $ 380,000 228,000 152,000 $ 760,000 Total