o R 1.60 1.60 1.28 1 48.80 39.04 x 1.60 4.00 2.40 1.60 1.28 48.80 39.04 x 1.60 48.80 39.04 x 11.60 S 12.00 0.40 11.60 9.28 48.80 Total: 63.60 14.80 48.80 39.04 P.14.20 JKL Ltd produces two products - J and K together with a by-product L from a single main process (process D). Product J is sold at the point of separation for 855 per kg, whereas product Kis sold for 77 per kg after further processing into product k2. By-product L is sold without further pro- cessing for 19.25 per kg. Process I is closely monitored by a team of chemists, who planned the output per 1,000 kg of input materials to be as follows: Product J 500 kgs Product K 350 kgs Product L 100 kgs Toxic waste 50 kgs The toxic waste is disposed at a cost of 16.50 per kg, and arises at the end of processing. Process II which is used for further processing of product K into product K2, has the following cost structure: Fixed costs 12,64,000 per week Variable cost 16.50 per kg processed The following actual data relate to the first week of the month: Process Opening work-in-progress Material input 40,000 kgs costing 6,60,000 Direct labour 4,40,00 Variable overheads 1,76,000 Fixed overheads 2,64,000 Outputs: Product 19,200 kgs Product K 14,400 kgs Product L 4,000 kgs Toxic waste 2.400 kgs Closing work-in-progress Process 11 Opening work-in-progress Input of product K 14,400 kgs Output of product K2 13,200 kgs Closing work-in-progress (50% converted and conversion costs were incurred in accordance with the planned cost structure) 1,200 kgs Nil j34 Nil NII REQUIRED: (1) Prepare process I account for the first week of the month using the final sales value method of attribute the pre-separation costs to join products. (ii) Prepare the toxic waste account and process I account for the first week of the month. (iii) Comment on the method used by the JKL limited to attribute the pre-separation costs to joint products. (iv) Advise the management of JKL. limited whether or not, on purely financial grounds, it should continue to process product K into product K2. (a) If product k could be sold at the point of separation for 247.30 per kg; and (b) If the 60 per cent of the weekly fixed costs of process II were avoided by not processing product K further