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. GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No.2 No. 3 Combined $489,680 $326,400 $ 204,000 $1,020,000 Sales (by grade) No. 1: 408,000 lbs. @ $1.20/lb No. 2: 488,000 lbs. @ $0.80/lb No. 3: 1,020,000 lbs. @ 50.20/lb Total sales Costs Tree pruning and care se. 30/lb Picking, sorting, and grading @ $0.10/lb Delivery costs Total costs Net income (loss) 122,480 122,400 306,000 40,800 40,800 102,000 16,000 16,000 38,500 179,200 179,200 446,500 $310,400 $147,200 $(242,500) $ 550,800 183.600 70,500 804,900 215,100 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 $32,000 of the $7,500 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,500 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. 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 2. Using your answers to part 1, prepare an income statement using the joint costs allocate intermediate calculations.) Combined $ 1.020,000 GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No.2 No.3 Sales $ 489,600 $ 326,400 $ 204,000 Costs Tree pruning and care Picking, sorting and grading Delivery Total costs $ 489,600 $ 326,400 $ 204,000 $ 1,020,000