MistyMoss Company produces two products, cheese and butter, in a single process. In the month of January, the joint costs related to the process amounted to $81,000. In addition, 5,000 pounds of cheese and 4,000 pounds of butter were produced. Separable processing costs beyond the split-off point were: cheese, $15,000; butter, $15,000. Cheese sells for $14 per pound; butter sells for $15 per pound.

Required:

a.

Allocate the joint costs using the net realizable value method.

b.

Allocate the joint costs using the physical units method.