Please double check part 2.

! Required information Problem 22-5AC 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 is concerned about the net loss on its No. 3 peaches. GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 262,500 Ibs. @ $1.80/1b $472,500 No. 2: 262,500 Ibs. @ $1.40/1b $367,500 No. 3: 1,050,000 Ibs. @ $0.20/1b $ 210,000 Total sales $1,050,000 Costs Tree pruning and care @ $0.40/16 105,000 105,000 420,000 630,000 Picking, sorting, and grading @ $0.10/1b 26,250 26, 250 105,000 157,500 Delivery costs 16, 200 16,200 38,700 71,100 Total costs 147,450 147,450 563,700 858,600 Net income (loss) $325,050 $220,050 $(353,700) $ 191,400 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 $32,400 of the $71,100 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,700 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. Problem 22-5AC Part 1 Required: 1. Prepare reports showing cost allocations on a sales value basis to the three grades of peaches. Separate the delivery costs into the amounts directly identifiable with each grade. Then allocate any shared delivery costs on the basis of the relative sales value of each grade. (Do not round intermediate calculations.) x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 0 0 x Indirect Cost Allocated Cost Tree Pruning and Care: Grade Allocation Base Nos. Sales value No. 1 No. 2 No. 3 Totals Picking, Sorting, and Grading: Grade Allocation Base Nos. No. 1 No. 2 No. 3 Totals Delivery: Grade Allocation Base Nos. No. 1 No. 2 Percent of Allocation Base Numerator Denominator % of Total 0 0 0 0 0 x Indirect Cost Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 0 No.3 Totals Problem 22-5AC Part 2 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. (Do not round intermediate calculations.) GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No. 2 No. 3 Combined Sales $ 472,500 $ 367,500 $ 210,000 $ 1,050,000 Costs Tree pruning and care 283,500 220,500 126,000 630,000 Picking, sorting and grading 70,875 55,125 31,500 157,500 Delivery 19,920 13,280 38,700 71,1001 Total costs 374,295 288,905 196,200 858,600 Net income $ 98,205 $ 78,595 $ 13,800 $ 191,400