Question $8\mathrm{.}2($Total: $21$ marks$)$ Oxtongue Paper Company processes wood pulp into two products. During April the joint costs of processing were $\backslash (\backslash$$ $132,000\backslash ).$ Production and sales value information for the month were as follows: Sales Value at Product Kilograms Produced Split$-$off Point Separable Costs Paper $135,000\backslash$$$55,000\backslash$$$217,000$ Cardboard $98,00040,000259,000$ Paper sells for $\backslash (\backslash$$ $2\mathrm{.}65\backslash )$ a kilogram and cardboard sells for $\backslash (\backslash$$ $3\mathrm{.}40\backslash )$ a kilogram. There were no beginning or ending inventories for April. Required $1.$ Determine the amounts to be allocated to each product using the: a$.$ estimated net realizable value method b$.$ sales value at split$-$off method $2.$ If the cardboard is sold at the split$-$off point then the post split$-$off factory capacity can be renovated and leased for the year. The cost of the renovation is budgeted at $\backslash (\backslash$$ $125,000\backslash )$ and the annual lease revenue will be $\backslash (\backslash$$ $165,000\backslash ).$ Determine if it is more profitable for the cardboard to be sold at the split$-$off point or at the end of production.