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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: 204,000 lbs. $2.287lb $448,800 No. 2: 284,800 lbs. e $1.88/alb $367,200 No. 3: 1,360,000 lbs. @ $0.15/1b $ 284,000 Total sales $1,820,000 Costs /Ib 71,400 71,400 476,000 618,888 Picking, sorting, and grading est 10/16 20,480 20,400 136,000 176,800 Delivery costs 15,400 15,480 37,900 68,780 Total costs 107,200 107,200 649,900 864,300 Net income (loss) $341,600 $260,000 $(445,900) $ 155,700 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 $30,800 of the $68.700 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,900 of delivery costs is for croting the No. 3 peaches and hauling them to the cannery Prev or 2 Next > Search a months A 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 Nos x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total No. 1 No. 2 No 3 Totals Picking, Sorting, and Grading: Grade Allocation Base Nos No. 1 x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator 9 of Total No.2 No 3 Totals Delivery Grade Allocation Base Percent of Allocation Base Allocated COS! X Indirect Cost Prev 2 of 2 Next > a te to search Required information No. 1 No. 2 No. 3 Totals Picking. Sorting, and Grading: Grade Allocation Base * Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Nos No. 1 No. 2 No 3 Totals Delivery: Grade Nos No. 1 No. 2 Allocation Base x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total No.3 Totals of 2 Next > Te to search a 3

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