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. Combined GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2017 No. 1 No. 2 No. 3 Sales (by grade) No. 1: 277,500 Ibs. @ $1.80/lb $499,500 No. 2: 277,500 Ibs. @ $1.20/1b $333,000 No. 3: 1,110,000 Ibs. @ $0.25/1b $ 277,500 Total sales Costs Tree pruning and care @ $0.50/Ib 138,750 138,750 555,000 Picking, sorting, and grading @ $0.94/Ib 11,100 11,100 44,400 Delivery costs 16,700 16,700 39,200 Total costs 166,550 166,550 638,600 Net income (loss) $332,950 $ 166,450 $ (361,100) $1,110,000 832,500 66,600 72,600 971,700 138,300 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 $33,400 of the $72,600 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $39,200 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