The Rieppel 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 litre; turpentine, $0.60 per litre. Methanol sells for $6.30 per litre; turpentine sells for $4.20 per litre. Requirement 1. How much joint costs per batch should be allocated to turpentine and to methanol, assuming that joint costs are allocated based on a physical measure (number of litres at splitoff point) basis? Calculate the amount of the joint costs per batch that will be allocated to turpentine and to methanol using the physical measure method. Assume that joint costs are allocated based on the number of litres at splitoff point. (Round the weightings to five decimal places.) Requirement 2. If joint costs are allocated on an NRV basis, calculate the amount of the joint costs that will be allocated to turpentine and to methanol. (Round the weightings to five decimal places. Round joint costs allocated to the nearest dollar.) Requirement 3. Prepare product-line income statements per batch for requirements 1 and 2 . Assume no beginning or ending inventories. Begin with the physical measure method. (Use parentheses or a minus sign to enter negative amounts.) Now show the operating income for both products using the NRV method. Requirement information The selling price of this product would be $18 a litre. Additional processing would increase separable cost $2.70 per litre (in addition to the $0.90 per litre separable cost required to yield methanol). The company would have to pay excise taxes of 20% on the selling price of the product