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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. 2 No. 3 Combined Sales (by grade) No. 11 198,000 lbs. 52.10/1b $415,800 No. 21 198.000 lbs. $1.90/1b $376,200 No. 31 990,000 lbs. $0.20/1b $ 198,000 Total sales $990,000 Coste Treo pruning and care o 50.30/Tb 59,400 59,400 297.000 415,800 Dicking, sorting, and grading # $0.20/1b 39,600 39,600 198.000 Delivery coats 277,200 15,700 15,700 38,200 69.600 Total costs 114,700 114,700 533,200 762, 600 Set incon (los) $301,100 $261,500 $(335, 200) S227,400 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. 2. Using your answers to part 1 prepare an income statement using the joint costs allocated on a sales value basis. (Do not round < Prev 6 of 6 Next search o E + + $ 5 6 7 00 9

Answer 1

Statement Showing Allocated Cost: Tree Pruning NO Base No 1 No 2 No 3 Combined Sale Value Sale Value Sale Value Numerator $ $ $ Cost Allocated Cost Denominator % of Total 4,15,800 $ 9,90,000 42.00% $ 4,15,800 $ 1,74,636 3,76,200 $ 9,90,000 38.00% 4,15,800 $ 1,58,004 1,98,000 $ 9,90,000 20.00% $ 4,15,800 $ 83,160 $ 4,15,800 Picking Sorting and Grading NO Base No 1 INo 2 No 3 Combined Sale Value Sale Value Sale Value Numerator $ $ $ Cost Allocated Cost Denominator % of Total 4,15,800 $ 9,90,000 42.00% $ 2,77,200 $ 1,16,424 3,76,200 $ 9,90,000 38.00% 2,77,200 $ 1,05,336 1,98,000 $ 9,90,000 20.00% $ 2,77,200 $ 55,440 $ 2,77,200 Delivery Cost NO Base Allocated Cost Numerator $ $ Cost % of Total 52.50% $ 47.50% $ No 1 No 2 No 3 Combined Sale Value Sale Value Direct Denominator 4,15,800 $ 7,92,000 3,76,200 $ 7,92,000 31,400 $ 31,400 $ $ $ 16,485 14,915 38,200 69,600 Statement Showing Income Statement: Georgia Orchards Income Statement For the year ended December 31, 2018 Particulars No 1 No 2 No 3 Combined Sales $ 4,15,800 3,76,200 $ 1,98,000 $ 9,90,000 Costs: Tree Pruning and Card $ 1,74,636 $ 1,58,004 $ 83,160 $ 4,15,800 Picking Sorting and Grading $ 1,16,424 $ 1,05,336 $ 55,440 $ 2,77,200 Delivery Cost $ 16,485$ 14,915$ 38,200 $ 69,600 Total Costs $ 3,07,545 $ 2,78,255 $ 1,76,800 $ 7,62,600 Net Income $ 1,08,255 $ 97,945 $ 21,200 $ 2,27,400 * Kindly Comment down for any clarifications/ queries and please upvote.