Production of bile takes place in:

PHYSIOLOGIC ANATOMY  OF BILIARY SECRETION Bile is secreted in two stages by the liver: 1.  The initial portion is secreted by the principal functional cells of the liver, the hepatocytes; this initial secretion contains large amounts of bile acids, cholesterol, and other organic constituents. It is secreted into minute bile canaliculi that originate between the hepatic cells. 2.  Next, the bile flows in the canaliculi toward the interlobular septa, where the canaliculi empty into terminal bile ducts and then into progressively larger ducts, finally reaching the hepatic duct and common bile duct. From these ducts, the bile either empties directly into the duodenum or is diverted for minutes up to several hours through the cystic duct into the gallbladder. In its course through the bile ducts, a second portion of  liver secretion is added to the initial  bile. This additional secretion is a watery solution of sodium and bicarbonate ions secreted by epithelial cells that line the ductules and ducts.   About 500 ml of bile is secreted per day.