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Saved Required information [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 Combined Sales by grade) No. 11 198.000 lbs. @ $2.10/1b $415,800 No. 2: 198,000 lbs. $1.90/10 5376,200 No.3: 990,000 the. $0.20/1b $ 190,000 Total sales $990,000 Coste Tree pruning and care 8 $0.30/1b 59,400 59,400 297,000 415,800 Dicking, sorting, and grading $0.20/1b 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 (los) $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 company's delivery cost records show that $31400 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 Required: < Prev 5 6 of 6 Next > search o E - % & he 5 3

Answer 1

Tree pruning and care:
Grade	Allocation Base	Percent of Allocation Base	x Indirect Cost	Allocated Cost
Nos.	Sales value	Numerator	Denominator	% of Total
No. 1	$ 415,800	$ 415,800	$ 990,000	42%	$ 415,800	$ 174,636
No. 2	$ 376,200	$ 376,200	$ 990,000	38%	$ 415,800	$ 158,004
No. 3	$ 198,000	$ 198,000	$ 990,000	20%	$ 415,800	$ 83,160
Totals	$ 990,000			100%		$ 415,800
Picking, sorting, and Grading:
Grade	Allocation Base	Percent of Allocation Base	x Indirect Cost	Allocated Cost
Nos.	Sales value	Numerator	Denominator	% of Total
No. 1	$ 415,800	$ 415,800	$ 990,000	42%	$ 277,200	$ 116,424
No. 2	$ 376,200	$ 376,200	$ 990,000	38%	$ 277,200	$ 105,336
No. 3	$ 198,000	$ 198,000	$ 990,000	20%	$ 277,200	$ 55,440
Totals	$ 990,000			100%		$ 277,200
Delivery:
Grade	Allocation Base	Percent of Allocation Base	x Indirect Cost	Allocated Cost
Nos.	Sales value	Numerator	Denominator	% of Total
No. 1	$ 415,800	$ 415,800	$ 792,000	52.5%	$ 31,400	$ 16,485
No. 2	$ 376,200	$ 376,200	$ 792,000	47.5%	$ 31,400	$ 14,915
	$ 792,000					$ 31,400
No. 3	$ 198,000	$ 198,000	$ 198,000	100%	$ 38,200	$ 38,200
Totals	$ 990,000					$ 69,600