Chevron Corporation produces gasoline as its main product and lubricants as a by-product. In September 2033, the company processes 60,000 barrels of crude oil costing $3,600,000. The production yields:

• Gasoline: 40,000 barrels
• Lubricants: 20,000 barrels

Gasoline sells for $150 per barrel, and lubricants sell for $50 per barrel.

Required:

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