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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

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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, 2017 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 400,000 Ibs. @ $1.20/lb No. 2: 400,000 Ibs. @ $0.80/1b No. 3: 800,000 Ibs. @ $0.25/lb $480,000 $320,000 $200,000 Total sales $1,000,000 Costs Tree pruning and care @ $0.25/Ib Picking, sorting, and grading $0.20/Ib Delivery costs 100,000 80,000 400,000 320,000 100,000 80,000 15,600 195,600 $284,400 $124,400 $ (198,100) $ 200,000 160,000 38,100 398,100 15,600 195,600 69,300 789,300 Total costs Net income (loss) 210,700 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 $31,200 of the $69,300 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,100 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 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: Percent of Allocation Base x Indirect Cost Grade Allocation Base Allocated Cost % of Total Nos Numerator Denominator No.1 0 No. 2 0 No. 3 0 0 Totals 0 Picking,Sorting, and Grading: Allocated Cost Grade Allocation Base Percent of Al location Base x Indirect Cost % of Total Nos. Numerator Denominator No. 1 0 No. 2 0 No. 3 0 0 0 Totals Delivery: Percent of Allocation Base Grade Allocation Base x Indirect Cost Allocated Cost % of Total Nos Numerator Denominator No. 1 No. 2 0 No. 3 Totals

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