Healthy Selections Cereals, Inc. (HSC) is a large food-processing company specializing in whole-grain, high-energy, low-calorie, and low-fat cereals that appeal to the health-conscious consumer. HSC has a premium image in the market, and most of its customers are loyal and willing to pay a bit extra to get the healthy choice that HSC offers. HSCs cereals are made in a series of processes that begin with sorting, cleaning, preparing, and inspecting the direct materials (grains, nuts, and other ingredients). The materials are then mixed and processed for consistency, cooked, given a final inspection, and packaged. All materials are added only at the beginning of the first process. The inspections in the first and final processes are made at the end of those respective processes, so all direct materials and conversion costs are lost for any defective units detected at the inspection point. The company uses weighted-average process costing and accounts for all waste as normal spoilage.

Currently, commodity prices are rising sharply, affecting the costs of many of the ingredients in HSCs products. The CFO, noting the sharp rise in the cost of the companys direct materials, has considered using the FIFO method.

The following data are for the first process for the current month. All output is measured in pounds.

Beginning WIP	14,000 pounds, 25% complete for conversion
Ending WIP	12,000 pounds, 40% complete for conversion
Normal spoilage	1,000 pounds
Pounds added this month	33,000 pounds

The cost information for the first process is as follows:

	Direct Materials				Conversion				Total
Beginning WIP	$	3,325			$	3,380			$	6,705
Current costs		66,000				104,000				170,000

Required:

1. Prepare a production cost report for the first process using the weighted-average method.

2. Prepare a production cost report for the first process using the FIFO method.