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: 247,500 Ibs. @ $1.80/lb $445,500 No. 2: 247,500 Ibs. @ $1.40/lb $346,500 No. 3: 792,000 lbs. @ $0.25/lb $ 198,000 Total sales $990,000 Costs Tree pruning and care @ $0.30/Ib 74,250 74,250 237,600 386,100 Picking, sorting, and grading @ $0.20/Ib 49,500 49,500 158, 400 257,400 Delivery costs 15,000 15,000 37,600 6 7,600 Total costs 138,750 138,750 433,600 711,100 Net income (loss) $306,750 $207,750 $ (235,600) $278,900 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 $30,000 of the $67,600 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,600 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. 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 $30,000 of the $67,600 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,600 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.) x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Tree Pruning and Care: Grade Allocation Base Nos. No. 1 No. 2 No. 3 Totals Picking, Sorting, and Grading: Grade Allocation Base x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Nos. No. 1 No. 2 No. 3 Totals Delivery: Grade Allocation Base x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Nos. No. 1 No. 2 No. 3 Totals 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: 247,500 Ibs. @ $1.80/lb $ 445,500 No. 2: 247,500 Ibs. @ $1.40/lb $346,500 No. 3: 792,000 Ibs. @ $0.25/lb $ 198,000 Total sales $ 990,000 Costs Tree pruning and care @ $0.30/Ib 74,250 74,250 237,600386,100 Picking, sorting, and grading @ $0.20/Ib 49,500 49,500 158,400 257,400 Delivery costs 15,000 15,000 37,600 67,600 Total costs 138,750 138,750 433,600 711,100 Net income (loss) $306,750 $207,750 $ (235,600) $278,900 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 $30,000 of the $67,600 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,600 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 For Year Ended December 31, 2018 No.1 No.2 No. 3 Combined Costs Total costs