The ABC Ltd makes three products from one common input. Process I is the joint process and every 100 kgs of input yields: 60 kgs of product A; 30 kgs of product B; and 5 kgs of product C and the...

The ABC Ltd makes three products from one common input. Process I is the joint process and every 100 kgs of input yields: 60 kgs of product A; 30 kgs of product B; and 5 kgs of product C and the remaining 5 kgs is a waste product with no market value. Product A requires further processing in process II at an average cost of `10 per kg. It is then sold at `100 per kg. Product B is sold at split-off point at `50 per kg. Product C after further processing in process III (at `2.5 per kg), is sold at `5 per kg. The selling expenses associated with C are negligible, and the company desires the cost of product C to be such as to earn a profit of 10 per cent on sales. During the current period, 1,00,000 kgs of input was processed through process I (assume no inventories), and the total operating costs in Process I were `51,85,000. You are required: (i) To determine the amount of Process I cost assigned to by-product C; (ii) To determine the amount of joint costs to be assigned to A and B using the relative sales value approach; (iii) To determine the amount of joint costs to be assigned to A and B, using the net realisable value less normal profit approach.