Grupa Lotos S.A. uses a joint process to produce products I, J, K, and L. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $90,000. Other relevant data are as follows:

Product	Sales Value At Split-Off	Additional Costs of Processing	Sales Value of Final Product
I	$30,000	$35,000	$80,000
J	40,000	28,000	68,000
K	33,000	30,000	75,000
L	20,000	18,000	38,000

Requirements:

1. Evaluate the effect on profits of processing Product I further beyond the split-off point.
2. Calculate the incremental profit from further processing Product J.
3. Allocate joint costs using the sales value at split-off method.
4. Prepare a cost reconciliation report for Grupa Lotos S.A.