Moving on ... there are two methods of allocating joint costs to joint products: Physical Output method and Relative Sales Value method...both are shown on page 170 of your textbook. So let's try one exercise: Suppose, 1,000 gallons of milk yield 500 pounds of butter, 400 pounds of cheese, and 100 pounds of cream. The sales value of butter is $3.00 per pound; for cheese it is $5.00 per pound; and for cream it is $5.00 per pound. The milk costs $2 per gallon. A. Determine the proper allocation of the joint cost to the three products by using the physical-units method. B. Determine the proper allocation of the joint cost to the three products by using the relative-sales-value method