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Allocating Joint Costs Using the Weighted Average Method 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 stightly out of proportion. These are packed in boxes and seld to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes, Peaches to be purced for use in sauces are of lower grade than peaches for stices, yet stiil food grade for canning. Thformation on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc, uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of peaches: Potal goint cost is \$18,000. Required: 1. Allocate the joint cost to the four grades of pesches using the weighted average method, Round vour allocation percentages to four decimat ptaces and round the allocated costs to the nearest deliar. 1. Allocate the joint cost to the four grades of peaches using the weighted average method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. (Note: The joint cost allocotion does not equal $18,000 due to rounding.) 2. What if the factory found that Grade A peaches were being valued less by customen and decided to decrease the weight factoc for Grade A peaches to 2.0 ? How would that affect the allocation of cost to Grade A peaches? How would it affect the allocation of cont to the remaining grades? Reund your allocation percentages to four decimal places and round the allocated cests to the nearest dollar. (Wote: The joint cost allocation does not equal $18,000 due to rounding.) 2. What if the factory found that Grade A peaches were being valued less by customers and decided to decrease the weight factor for Grade A peaches to 2.0 ? How would that affect the allocation of cost to Grade A peaches? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. (Wofe: The joint cost allocation does not equal $18,000 due to rounding.)

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