Hi there!

I am having a difficult time understanding how to compute the indirect cost for this problem which is holding me back from completing it. Can somebody please help me figure this out and explain how to compute it?

I believe what I have done so far is correct, but if it is not can you please help me understand where I went wrong?

Will give good feedback for helpful answers.

Thanks!! :)

Problem 24-4AB Allocation of joint costs LO C3 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 believes it should have given its No. 3 peaches to charity and saved its efforts GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2013 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 257,500 lbs. $1.80/lb No. 2: 257,500 lbs. $1.40/lb No. 3: 824,000 lbs. $0.25/lb $463,500 $360,500 206,000 $1,030,000 otal sales Costs Tree pruning and care @ $0.50/lb Picking, sorting, and grading @ $0.10/lb Delivery costs 128,750 25,750 16,000 128,750 25,750 16,000 412,000 82,400 38,400 669,500 133,900 70,400 Total costs 170,500 170,500 532,800 873,800 Net income (loss) $293,000 $190,000 $(326,800) 156,200 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 $32,000 of the $70,400 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,400 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery