Lyonking Ltd. manufactures 2 joint products. Both products require additionalprocessing beyond the split-off point. Jimbo sells for $38 per unit and Kimbo sells for$48 per unit.

There were no opening inventories at 1 Mar 2016. The following information relatesto the month of Mar

:Production (units) Separable costs Jimbo 100,000 $500,000Kimbo 90,000 $300,000

Total joint processing costs for Mar were $3,200,000. The ending finished goods as at31 Mar 2016 amounted to 15,000 units of Jimbo and 40,000 units of Kimbo

.Required :

(a) Determine the cost of the ending finished goods of each of the products as at 31Mar 2016 using the physical method. (1 mark)

(b) Determine the cost of the ending finished goods of each of the products as at 31Mar 2016 using the net realisable value method. (3 marks)(c) Determine the cost of the ending finished goods of each of the products as at 31Mar 2016 using the constant gross margin method. (2 marks)

(d) Lyonking is considering to further process Jimbo into Limbo at the additionalcost of $10.00 per unit. Limbo could be sold at $50.00 per unit. Should thecompany produce Limbo? Show the necessary computation to justify yourdecision.(2 marks)