processed further without gain or loss in volume. Separable processing costs are methanol, $\backslash (\backslash$$ $1\mathrm{.}00\backslash )$ per litre; turpentine, $\backslash (\backslash$$ $0\mathrm{.}45\backslash )$ per litre. Methanol sells for $\backslash (\backslash$$ $6\mathrm{.}80\backslash )$ per litre; turpentine sells for $\backslash (\backslash$$ $4\mathrm{.}70\backslash )$ per litre.

Read the requirements.

Requirement $1.$ How much joint costs per batch should be allocated to turpentine and to methanol, assuming that joint costs are allocated based on a physical measure $($number of litres at splitoff point$)$ basis? to five decimal places.$)$

Required

$1.$ How much joint costs per batch should be allocated to turpentine and to methanol, assuming that joint costs are allocated based on a physical measure $($number of litres at splitoff point$)$ basis?

$2.$ If joint costs are to be assigned on an NRV basis, how much of the joint costs should be assigned to turpentine and to methanol?

$3.$ Prepare product$-$line income statements per batch for requirements $1$ and $2.$ Assume no beginning or ending inventories.

$4.$ The company has discovered an additional process by which the methanol $($wood alcohol$)$ can be made into laboratory ethanol. The selling price of this product would be $\backslash (\backslash$$ $20\backslash )$ a litre. Additional processing would increase separable cost $\backslash (\backslash$$ $2\mathrm{.}95\backslash )$ per litre $($in addition to the $\backslash (\backslash$$ $1\mathrm{.}00\backslash )$ per litre separable cost required to yield methanol$).$ The company would have to pay excise taxes of $\backslash (20\backslash \%\backslash )$ on the selling price of the product. Assuming no other changes in cost$,$ what is the joint cost applicable to the ethanol $($using the NRV method$)?$ Should the company produce the ethanol? Show your computations.

Please answer all requirements.