Rovet Oil \& Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsalable intermediate products: ICR8, ING4, and XGE3. These intermediate products are further processed separately to produce crude oil, natural gas liquids (NGL), and natural gas (measured in liquid equivalents). Afederallawthathasrecentlybeenpassedtaxescrudeoilat30%ofoperatingincome.Nonewtaxistobepaidonnaturalgasliquidsornaturalgas.(Clicktheicontoviewtheoverview.)(Clicktheicontoviewadditionalinformation.)Readtherequirements. An overview of the process and results for August 2020 are shown here (Note: The numbers are small to keep the fnrie nn kaw rnnrante 1 Starting August 2020, Rovet Oil \& Gas must report a separate product-line income statement for crude oil. One challenge facing Rovet Oil \& Gas is how to allocate the joint cost of producing the three separate salable outputs. Assume no beginning or ending inventory. 1. Allocate the August 2020 joint cost among the three products using the following: a. Physical-measure method b. NRV method. 2. Show the operating income for each product using the methods in requirement 1. 3. Discuss the pros and cons of the two methods to Rovet Oil \& Gas for making decisions about product emphasis (pricing, sell-or-processfurther decisions, and so on). Requirement 1. Allocate the August 2020 joint cost among the three products using the (a) Physical-measure method and (b) NRV method. First, allocate the August 2020 joint cost using the physical-measure method. (Round the weights to five decimal places and joint costs to the nearest cent.)