Read the requirements. Requirements 1. How much of the joint costs per batch will be allocated to methanol and to turpentine, assuming that joint costs are allocated based on the number of gallons at splitoff point? 2. If joint costs are allocated on an NRV basis, how much of the joint costs will be allocated to mechanol and to turpentine? 3. Prepare product-line income statements per batch for requirement 1 and 2. Assume no beginning or ending inventories. 4. The company has discovered an additional process by which the melhanol (wood alcohol) can be made irto a pleasant-lasting alcoholic beverage. The selling price of this beverage would be $80 a gallori. Additional processing would incresse separable costs $9 per callon (in addition to the S3 per gallon separable cost required to yield methanol). The company would have to pay excise taxes of 20% on the selling price of the beverage. Assuming no other changes in cost, what is the joint cost applicable to the wood aloohol (using the NRV method)? Should the compary produce the alcohalic beverage? Show your compulations