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: 198,000 Ibs. @ $2.10/lb	$	415,800
No. 2: 198,000 Ibs. @ $1.90/lb				$	376,200
No. 3: 990,000 Ibs. @ $0.20/lb							$	198,000
Total sales											$	990,000
Costs
Tree pruning and care @ $0.30/Ib		59,400			59,400			297,000				415,800
Picking, sorting, and grading @ $0.20/Ib		39,600			39,600			198,000				277,200
Delivery costs		15,700			15,700			38,200				69,600
Total costs		114,700			114,700			533,200				762,600
Net income (loss)	$	301,100		$	261,500		$	(335,200	)		$	227,400

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 $31,400 of the $69,600 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,200 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.)

Saved In preparing this statement, the company allocated joint costs among the grades o per pound. The company's delivery cost records show that $31,400 of the $69,600 peaches and hauling them to the buyer. The remaining $38,200 of delivery costs is hauling them to the cannery. 2. Using your answers to part 1, prepare an income statement using the joint costs allocat intermediate calculations.) GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2018 No. 1 No. 2 ces No. 3 Combined Costs Total costs 0 0 0 0 $ 0 $ 0 $ 0 $ 0