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The Tempura Spirits Company produces two products—methanol (wood alcohol) and turpentine—b

The Tempura Spirits Company produces two products—methanol (wood alcohol) and turpentine—b

The Tempura Spirits Company produces two products—methanol (wood alcohol) and turpentine—by a joint process. Joint costs amount to $124,000 per batch of output. Each batch totals 9,500 gallons: 25% methanol and 75% tur-pentine. Both products are processed further without gain or loss in volume. Separable processing costs are methanol, $4 per gallon, and turpentine, $2 per gallon. Methanol sells for $22 per gallon. Turpentine sells for $16 per gallon.

Tripti 05-Dec-2019

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