Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish$-$free peaches that can be sold to gourmet fruit

sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned

peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food

grade for canning. Information on a recent purchase of $20,000$ pounds of peaches is as follows:

Total joint cost is $$18,000.$

Required:

Allocate the joint cost to the four grades of peaches using the physical units method.

Joint Cost

Allocate the joint cost to the four grades of peaches by finding the average joint cost per pound and multiplying it by the number of pounds in the grade. Round the

average cost answer to the nearest cent.

Average cost $=$ :

per pound.

Joint Cost

affect the allocation of cost to the remaining common grades?

Joint Cost

Grades

Allocation

Grade A

Grade B

Slices

Pureed