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[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: 350,000 Ibs. @ $1.50/lb	$	525,000
No. 2: 350,000 Ibs. @ $0.90/lb				$	315,000
No. 3: 600,000 Ibs. @ $0.35/lb							$	210,000
Total sales											$	1,050,000
Costs
Tree pruning and care @ $0.30/Ib		105,000			105,000			180,000				390,000
Picking, sorting, and grading @ $0.20/Ib		70,000			70,000			120,000				260,000
Delivery costs		15,300			15,300			37,800				68,400
Total costs		190,300			190,300			337,800				718,400
Net income (loss)	$	334,700		$	124,700		$	(127,800	)		$	331,600

In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The companys delivery cost records show that $30,600 of the $68,400 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,800 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery.

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 x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 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