Required information Problem 9-5AC 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. Sales (by grade No. 1: 440,000 Iba. $1.20/1b No. 2: 440,000 Ibs. $0.80/1b No. 3: 1,100,000 Ibs. $0.20/1b Total sales 528,000 $352,000 220,000 $1,100,000 Costs Tree pruning and care $0.25/Ib Picking, sorting, and grading $0.20/1b Delivery costs Total costs 110,000 110,000 275,000495,000 396,000 72,300 963.300 88,00088,000 220,000 39,100 214,600 214,600 534,100 16,600 16,600 Net income (loss) $313,40D $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 Problem 9-5AB 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.) Income Statement For Year Ended December 31, 2018 No. 1 No. 2 No. 3 Combined Costs Total costs