Chevron Corporation refines crude oil into various petroleum products. For the month of December 2024, the refining process incurs joint production costs of 100 million and produces gasoline, diesel, and jet fuel. Gasoline has a sales value of 400 million, diesel 300 million, and jet fuel 200 million.

Required:

• Allocate joint production costs using the sales value at split-off method.
• Determine the joint cost allocation per unit for each petroleum product.
• Calculate the gross profit for each product after allocating joint costs.
• Analyze the impact of joint production on product profitability.
• Discuss alternative methods for allocating joint costs and their implications.