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The Rovet Spirits Company produces two products-methanol (wood alcohol) and turpentine-by a joint process. Joint costs amount to $123,000 per batch of output. Each
The Rovet Spirits Company produces two products-methanol (wood alcohol) and turpentine-by a joint process. Joint costs amount to $123,000 per batch of output. Each batch totals 11,000 gallons: 25% methanol and 75% turpentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $2 per gallon, and turpentine, $1 per gallon. Methanol sells for $20 per gallon. Turpentine sells for $13 per gallon. Read the requirements. Requirement 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? (Round the weights to five decimal places.) Physical measure of total production Weighting Joint costs allocated Methanol Turpentine Total
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