QUESTION 1) Riviera Company has a factory specialized in dairy production. It processes raw milk and converts it into 3 products through a joint production process; Butter, Cream Cheese and Cheese. All of the joint products can be sold at the split-off point, but all of them can also be further processed into more premium products by adding some flavors and they can be sold after further processing. The joint cost for June 2020 was $540,000 and other information about the companys products for June 2020 were as follows:

Products	Kilograms Produced	Price at Split-Off (per kg)	Further Processing Cost per Kilogram	Selling Price After Further Processing (per kg)
Butter	98,000	8	2	12
Cream Cheese	125,000	7	6	20
Cheese	77,000	10	3	16

REQUIRED:

1. Calculate the unit costs for each of the joint products under the each method mentioned below;

1. Physical Units Method
2. Sales-Value-At-Split-Off Method
3. Net Realizable Value Method

2. Now compare the unit cost you have computed under each method above. Assume that you are the financial consultant of this company, and the boss asked you for an advice. Which method is more suitable for this company? Briefly explain your answer based on your findings (unit cost) and other factors, if necessary.