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Allocating Joint Costs Using the sales Value at Split-Off 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 1 peaches and have blemishet. Peaches to be pureed for use in sauces are of lower grade thon penches for slices, vet still food grade for canning Information on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc, uses the sales value at split off method of joint cost allocation and has provided the following information about the four grades of peaches: Grades Pounds Price at Split off (per 16.) Grade A $6.00 1.700 Grade 4,000 200 Slices 9,000 1:30 Dureed 5,300 0.50 Total 20,000 Total joint cost is $15,000 1. Allocate the joint cost to the four grades of peaches using the sales value at split off method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Grade A Grade Slices Pureed Total 2. What if the price at split off of Grade peaches increased to $160 per pound? How would that affect the allocation of cost to Grade 8 peaches? How would it affect the allocation of cost to the remaining grades Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation Orade Grade Slices Puteed Total