Chevron Corporation refines crude oil into gasoline and jet fuel using process costing. In September 2035, the company processes 80,000 barrels of crude oil costing $4,800,000. Normal loss is estimated at 5% of input. The production yields:

• Gasoline: 50,000 barrels
• Jet Fuel: 25,000 barrels

Required:

• Calculate the cost per unit for gasoline and jet fuel considering normal losses.
• Account for abnormal losses and calculate the equivalent units.
• Allocate joint costs using the physical units method.
• Determine the cost per equivalent unit for gasoline and jet fuel.
• Prepare a production cost report showing the cost of production, normal losses, and abnormal losses.