Allocating Joint Costs Using the Physical Units 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 slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food grade for canning. Information on a recent purchase of 26,000 pounds of peaches is as follows: Grades Pounds Grade A 1,820 Grade B 6,500 Slices 10,400 Pureed 7,280 Total 26,000 Total joint cost is $18,200. Required: 1. Allocate the joint cost to the four grades of peaches using the physical units method. Joint Cost Grades Grade A Allocation