Fresco Company Limited, Hawkes Bay, makes a unique syrup using manuka honey and local herbs. The syrup is sold in small bottles and is priced as a flavouring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below: Units to be accounted for: Work in process, April 1 (materials 90% complete; conversion 2,000 10% complete) Units started into production in April 47,600 Total units to be accounted for 49,600 Units accounted for as follows: Units completed and transferred to the next department 47,800 Work in process, April 30 (materials 70% complete; 1,800 conversion 40% complete) Total units accounted for 49,600 $6,568 Cost Reconciliation Cost to be accounted for: Work in process, April 1 (Direct materials $3,692; conversion costs $2,876) Cost added during the month (Direct materials $71,363; conversion costs $543,079) Total cost to be accounted for Cost accounted for as follows: Work in process, April 30 Transferred to next department Total cost accounted for 614,442 $621,010 $ 10,029 610,981 $621,010 The management is not convinced of the format of the report. The management would like some additional information about the company's performance. In addition, the CFO of the company is thinking to use FIFO method instead of weighted average method. Question 2.2 Provide a comparative analysis of two methods (WAM vs FIFO) of product costing. Which method do you suggest the company to use for product costing and inventory valuation, considering the firm's competitive environment? Explain. [Word limit: 300 words. Note the word count at the end of your answer.] (10 marks) Your Answer (expand the space as required): Word count=