Required information [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 GECRGIA CRCHARDS Income Statement For Year Ended December 31, 2017 No 1 No. 2 Combined No. 3 Sales (by grade) No. 1: 408,000 Ibs. $1.20/1b No. 2 400,000 Ibs.s0.s0/lb No.3: 680,000 Ibs.@ s0.30/1b Total sales $489,600 $326,400 $ 204,000 $1,020,000 Costs Tree pruning and care s0.25/1 Picking, sorting, and grading so.20/1b Delivery costs Total costs 102,000 102,000 81,600 81,600 15,200 15,200 198,800 198,800 170,000 136,000 37,700 343,700 $290,800 $127,600 5(139,700) $ 278,700 374,000 299,200 60,100 741,300 Net income (loss) nces In preparing this statement, the company alllocated joint costs among the grades on a physical basis as an equal amount per pound. The company's delivery cost records show that $30,400 of the $68,100 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer The remaining $37700 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 theree grades of peaches. Separate the delivery costs into the amounts directly identifiable with each grade. Then allocate any shared deivery costs on the basis of the relative sales value of each grade. (Do not round intermediate calculations.) Tree Pruning and Care Grade Nos Allocation Bas Bercent of Atlocation Base Numerator x lndirect Cost Allocated Cos Denominao Total No a M Gmail From The Communi...O N New Tab mework Saved 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.) Tree Pruning and Care Grade Allocation Base Percent of Allocation Base ed x Indirect Cost Allocated Cost Nos Numerator Denominator % of Total No 1 No. 2 bok No 3 Totals Picking, Sorting. and Grading Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Nos Numerator Denominator % of Total erences No. 1 0 No 2 0 No 3 0 Totals Delivery Grade Allocation Base Percent of Allocation Base x Indirect Cost Allocated Cost Nos Numerator Denominator % of Total No 1 No 2 0 No 3 Totals
