The function of bile is to emulsify(breakdown fat into microscopic droplet of fat) fats. Emulsification helps digestion by increasing greater surface area for better absorption. Then the pancreas would produce pancreatic lipase to break down fat into glycogen and fatty acids.   Bile is produced in the Liver. The large intestine only produces some mucus and its main role is in the absorption of water from the waste products of digestion which forms the stool. + 99 others found this useful.