Allocate joint costs and evaluate by-product costing for a chemical refinery.

Joint Production Details	Total Joint Costs ($)	Main Product Units Produced	By-Product Units Produced
Joint Costs	$1,000,000	40,000 units	20,000 units

Requirements:

Allocate joint costs to the main product and by-product using suitable allocation methods.

Determine the cost per unit for both the main product and by-product.

Discuss the treatment of by-products in cost accounting and financial reporting.

Recommend strategies to maximize profitability from joint production processes.