Allocating Joint Costs Using the Sales-Value-at-Split-Off MethodOrchard Fresh, Inc., purchases apples from local orchards and sortsthem into four categories. Grade A are large blemish-free applesthat can be sold to gourmet fruit sellers. Grade B apples aresmaller and may be slightly out of proportion. These are packed inboxes and sold to grocery stores. Apples for slices are evensmaller than Grade B apples and have blemishes. Apples forapplesauce are of lower grade than apples for slices, yet stillsuitable for canning. Information on a recent purchase of 20,000pounds of apples is as follows: Assume that Orchard Fresh, Inc.,uses the sales-value-at-split-off method of joint cost allocationand has provided the following information about the four grades ofapples: Grades Pounds Price at Split-Off (per lb.) Grade A 1,800$4.00 Grade B 5,000 1.00 Slices 8,000 0.50 Applesauce 5,200 0.10Total 20,000 Total joint cost is $18,000. Required: 1. Allocate thejoint cost to the four grades of apples using thesales-value-at-split-off method. Round your allocation percentagesto four decimal places and round the allocated costs to the nearestdollar. Joint Cost Grades Allocation Grade A $ Grade B SlicesApplesauce Total $ 2. What if the price at split-off of Grade Bapples increased to $1.20 per pound? How would that affect theallocation of cost to Grade B apples? How would it affect theallocation of cost to the remaining grades? Round your allocationpercentages to four decimal places and round the allocated costs tothe nearest dollar. Joint Cost Grades Allocation Grade A $ Grade BSlices Applesauce Total $