Save Sign Homework: Chapter 16 - Homework A Score: 0 of 1 pt 3 of 4 (0 complete) anti E16-24 (similar to) HW Score: 0%, 0 of 4 pts Question Help The Rippel Spirits Company produces two products methanol (wood alcohol) and turpentine by a joint process. Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $3 per gallon, and turpentine, $2 per gallon Methanol sells for $21 par gallon Turpentine sells for $14 per gallon Read the reducements Requirements Requirement 1. How much of the joint costs per batch will be allocated to me gallons ats p oint? Roadthew s to five de aces) Methanol Turpentine Tot seules Physical measure of total production Weighting Joint costs allocated Correct: 0 1. How much of the joint costs per batch wil be located to methanol and to turpentine, assuming that it costs are allocated based on the number of gallons at splitoff point? 2 joint costs are allocated on an NRV basis, how much of the joint costs will be allocated to methanol and to turpentine? 3. Prepare product line income statements per batch for requirement 1 and 2 Assume no beginning or ending inventories The company has discovered an additional process by which the methanol wood alcohol) can be made into a pleasant tasting alcoholic beverage The selg once of beverage would be $50 a ton. Additional processing would increase separable $9 personation to the $3 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 alcohol (using the NRV method)? Should the company produce the alcoholic beverage? Show your computations Print Done Enter any number in the edited and then click Check Answer 6 Clear All Check