Allocating Joint Costs Using the Physical Units Method Sunny Lane, Inc, purchases peaches from lecal orchards and sorts them inte 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. Feaches to be sliced for canned peaches are even smaller than Grode 8 peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yee still food orade for canning. Information on a recent purchase of 30,000 pounds of peaches is as follows: Total yoint cost is \$25,500. Required: 1. Allocate the joint cost to the four grades of peaches using the phrsical units methed 2. Allocate the joint cost to the four grades of peaches by finding the average joint cost per pound and multiplying it by the number of pounds in the grade. Round the average cost answer to the nearest cent. Average cost = per pound Joint Cost Grades Allocotion Grade A Grade B slices Pureed 3. Whet if there were 2,700 pounds of Grade A peaches and 6,900 pounds of Grade B? How would that affect the alioxaton of cost to these two graides? How would it affect the allocation of cost to the remaining common grades? Joint Cost Grades Allocation Grade A crade B shices Pureed