Points: 45.39 of 50 Save The Vapor Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint costs amount to $144,000 per batch of output. Each batch totals 40,000 litres: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $0.90 per tre turpentine, $0.60 per litre. Methanol sells for $6.30 per litre, turpentine sells for $4.20 per tre Required Final sales value of total production $ Deduct separable costs NRV at splitoff point Weighting Joint costs allocated Lab Ethanol Turpentine Total 180,000 $ 126,000 $ 72,000 306,000 18,000 90,000 $ 108,000 $ 108,000 $ 216,000 0.50000 0.50000 1.00000 $ 72,000 $ 72,000 $ 144,000 To help you to determine if the company should produce the ethanol, complete the following table Incremental revenue Incremental costs Added processing Taxes Incremental operating income (loss) from further processing) es Calculator Clear all Check answer