Required information [The following information applies to the questions displayed below.) California Orchards reports the following sales data for the year ended December 31 Grade of Walnuts Number 1 Number 2 Number 3 Total Sales $ 504,000 336,000 210,000 $ 1,050,000 The company incurred the following joint costs for the year Tree pruning and care Pickup, sorting, and grading $ 580,000 168,000 Required: 1. Use the value basis to allocate joint costs to the three grades of walnuts on the basis of sales value. *Indirect Cost Allocated Cost Allocation of joint costs on the basis of sales values Grade Allocation Base Percent of Allocation Base Numbers Numerator Denominator % of Total Number 1 $ 504,000 $ 504,000 5 1,050,000 48.00% Number 2 336,000 336,000 1,050,000 32.00% Number 3 210,000 210,000 1,050,000 20.00% Totals $ 1,050,000 100.00% The following information applies to the questions displayed below.) California Orchards reports the following sales data for the year ended December 31, Grade of Walnuta Number 1 Number 2 Number 3 Total Sales $ 504,000 336,000 210,000 $ 1.050,000 The company incurred the following joint costs for the year. Tree pruning and care $ 588,000 Pickup, sorting, and grading 168,000 2. Compute gross profit for each of the three grades of walnuts. Assume, cost of goods sold consists only of the joint costs Gross Profit Grade Number 1 Number 2 Number 3 Total