1. Chevron Corporation refines crude oil into gasoline and jet fuel. In December 2037, the company processes 500,000 barrels of crude oil costing $25,000,000. Production yields:
   • Gasoline: 300,000 barrels
   • Jet Fuel: 200,000 barrels

Requirements:

• Allocate joint costs using the net realizable value (NRV) method.
• Calculate the cost per equivalent unit.
• Prepare a cost reconciliation statement.
• Perform a cost-volume-profit analysis for each product.
• Discuss the strategic implications of cost allocation on pricing.