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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. 2 Combined Sales (by grade) No. 1. 277.500 Ibs. $1.80/lb $499,500 No. 2: 277,500 lbs. $1.20/15 $333,000 No. 3: 1.110,000 lbs. $0.25/lb $ 277,500 Total sales $1,110,000 Costs Tree pruning and care $0.50/Ib 138,750 138, 750 555,000 832,500 Picking, sorting, and grading # $0.04/16 11,100 11,100 44,400 66,600 Delivery costs 16,700 16.700 39,200 22.600 Total costs 166,550 166.550 638, 600 971.700 Net Income loon) $332,950 $166,450 $(361,100) $ 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 connery equired: - Prepare reports showing cost allocations on a sales value basis to the three grades of peaches. Separate the delivery costs into the mounts 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 0 0 0 0 No. 1 No. 2 No. 3 Totals Picking, Sorting, and Grading: Grade Allocation Base 0 x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Nos 0 No. 1 0 No. 2 0 0 No. 3 0 Totals Delivery: Grade Percent of Allocation Base x Indirect Cost Allocated Cost Allocation Base TIT Totals Picking, Sorting, and Grading: Grade Allocation Base x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Nos. No. 1 0 No. 2 0 0 No. 3 0 x Indirect Cost Allocated Cost Allocation Base Totals Delivery: Grade Nos. No. 1 No. 2 Percent of Allocation Base Numerator Denominator % of Total 0 0 No.3 Totals

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