Chevron Corporation produces gasoline as its main product and lubricants as a by-product. In August 2033, the company processes 50,000 barrels of crude oil costing $3,000,000. Gasoline sells for $120 per barrel, and lubricants sell for $50 per barrel. The production yields 40,000 barrels of gasoline and 10,000 barrels of lubricants.

Required:

• Allocate joint costs using the net realizable value method.
• Determine the cost per equivalent unit for gasoline and lubricants.
• Calculate the total joint production costs allocated to gasoline production.