1) Prepare process 2 account for April 2022 2) differentiate between a joint product and by-product

Question One Kass Manufacturing Ltd (KML) is a textile company. It produces different fabrics for both individuals and institutions. KML's products pass through a series of processes. It uses the First in First out (FIFO) valuation method. In Process 2, two materials (X and 2) are added to the output from Process I to form the final fabric MK. It is expected that 10% of any new input to Process 2 (that is, transfers from Process 1 plus Process 2 materials added) will be immediately lost and that this loss will have no resale value. It is also expected that in addition to the loss, 4% of any new input will form a by-product, KM2, which can be sold without additional processing for K10.00 per metre. Data from Process 2 for April 2022 was as follows: Opening work in process Process 2 had 1,200 metres of opening work in process. The value and degree of completion of this was as follows: Process I X Z Conversion costs Process I X Input During April, the inputs to Process 2 were: Z Conversion costs % degree of completion 100 100 100 SO KM2 MK Metres 25,000 6,000 15,000 Output The output from Process 2 during April was: 2.300 metres 39,250 metres 18,950 Closing work in process At the end of April, the work in process was 7,250 litres. This was fully complete in respect of all materials, but only 30% complete for conversion costs. 203 K 78,395 30,000 22,500 114,000