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ChimiePro S . A . converts ethylene into two main products: acetic acid and ethanol. The production process begins with the oxidation of ethylene, and

ChimiePro S.A. converts ethylene into two main products: acetic acid and ethanol. The production process begins with the oxidation of ethylene, and a by-product called acetaldehyde is also generated, which is sold without further processing.
Acetic acid and ethanol are then separated and purified in subsequent production stages.
During the last quarter, the following data were recorded:
- The company purchased 8,000 tonnes of ethylene at a price of 1,200 per tonne, including transport costs.
- Direct labor costs and manufacturing overheads for ethylene oxidation amounted to 200,000. At the end of the period, 500 tonnes of unprocessed ethylene remained in stock.
- Of the processed ethylene, 3,000 tonnes were used to produce acetic acid and 4,000 tonnes to produce ethanol.
- The standard cost of converting oxidized ethylene into acetic acid was 250 per tonne, and for ethanol, 100 per tonne. There was no difference between standard and actual costs during this period.
- ChimiePro produced 60,00040-liter barrels of acetic acid, selling 55,000 barrels at an average price of 145 each. As for ethanol, 40,000100-liter barrels were produced and sold at an average price of 80 per barrel. Acetaldehyde was sold at 10 per ton . WORK TO DO
Allocate joint production costs between acetic acid and ethanol using the theoretical market value method at the point of separation, and calculate the gross margin generated by each of the company's products. Assume that no joint production costs are allocated to bY products.

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