The Ridgewood Spirits Company produces two products, Turpentine, and Methanol by a joint process. At the split-off point, each batch produces a total of 40,000 liters; 25% Methanol and 75% Turpentine. Joint costs amount to $144,000 per batch produced. Both products are processed further without losses in volume. Separable processing costs are $0.90 per liter for Methanol and $0.60 per liter for Turpentine. Turpentine sells for $4.20 per liter and Methanol sells for $6.30 per liter. Required: 1. How much of the joint costs per batch should be allocated to Turpentine and Methanol, assuming that joint costs are allocated on a physical-measure basis? (2 marks) 2. If joint costs are assigned on an NRV basis, how much of the joint costs should be assigned to Methanol and Turpentine? (4 marks) 3. The company has discovered an additional process by which Methanol can be made into Ethanol (wood alcohol). The selling price of Ethanol would be $18 a liter. Additional processing would increase separate costs by $7.07 per liter. The company would have to pay excise taxes of 30% on the selling price of the product. Assuming no other changes in cost: a) what is the amount of joint cost applicable to Ethanol using the NRV method? (6 marks) b) Determine if the company should produce Ethanol at all? (3 marks) Note: Show all your computations to support your