Healthy Selections Cereals, Incorporated (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. HSC's 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 HSC's products. The CFO, noting the sharp rise in the cost of the company's 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. Soginning WIP nding IP Norwal spoilage Pounds added this month 14,400 pounds, 25% complete for conversion 12,000 pounds, 40% complete for conversion 1,000 pounds 33,200 pounds The cost information for the first process is as follows: eginning HIP Survent cists Required: Direct Materials 3,335 67,000 Conversion $3,390 105,000 Total $6,725 172,000 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. Prov 1 of 1 Next Healthy Selections Cereals, Inc. (HSC) Production Cost Report Production Information WA Equiv Units Physical Units Completion Percentage Direct Materials Conversion Input: Beginning WIP Direct materials Conversion 14,400 0 100 % 0 25% Units started or trans-in 33,200 Total to account for 47,600 Output: Units finish or trans-out Normal spoilage Ending WIP Direct materials Conversion Total accounted for Equivalent Units 0 0 0 0 0 33,200 100% 1,000 1,000 1,000 100 % 1,000 1,000 12,000 0 100% 12,000 0 0 40% 0 4,800 46,200 Unit Cost Determination Direct Materials Conversion Total 14,000 6.800 Total accounted for Equivalent Units 40,200 Unit Cost Determination Direct Materials Conversion Total Beginning WIP S 3,335 $ 3,390 $ 6,725 21 Current costs 67,000 105,000 172,000 Total S 70,335 $ 100 390 $178,725 Divide by equivalent units 46,200 0 WTAVG Cost per EU 0.0000 S 0.0000 S 0.0000 14,000 6.800 Completed Cost Assignment: Weighted-Average Ending WIP Total and Trans-1 Finished goods 33,200 units $ 10 S 0 Plus Normal Spoilage 1,000 units $ 1,000 $ 1,000 Ending WIP 11,808 units Direct materials 12,000 units 0 $ 0 Conversion 4,800 units 0 $ 0 Total costs accounted for $ 1,000 S 0 $ 1.000 Prepare a production cost report for the first process using the FIFO method. (Round "Cost per EU" to 4 decimal places. Round final answers to nearest whole dollar amount. Negative amounts should be indicated by a minus sign.) Healthy Selections Cereals, Inc. (HSC) Production Cost Report Production Information Physical Units Completion Percentage FIFO Equiv Units Direct Materials Conversion Input: Beginning WIP Direct materials Conversion Units started or trans-in 14,400 0 100% (14,400) 0 0 25% 0 (3,600) 33,200 0 0 Total to account for 47,600 Output Units finish or trans-out 34,200 100 % 14,400 14,400 Normal spoilage 1,000 100 % 1,000 1,000 Ending WIP 12,000 Direct materials 100 % 12,000 0 Conversion 40 % 0 4,800 Total accounted for 47,200 Equivalent units 13:000 16,600 Equivalent units Unit Cost Determination Direct Materials Conversion Total Beginning WIP $ 3,335 3,335 S 6,670 Current Costs 0 0 0 Total $ 3,335 5 3,335 S 6,670 Divide by equivalent units 33,200 36,800 FIFO Cost per EU $ 0.0000 $ 0.0000 S 00000 Cost Assignment: FIFO Prior period costs in beginning WIP Current costs to complete beg WIP Direct materials Conversion Units started and finished Normal spoilage Total Ending WIP Direct materials Conversion Total costs accounted for 13,000 16,600 Completed and Trans- Ending WIP Total $ 0 0 0 units 0 0 units 433 1,000 units 0 12,000 units 0 $ 433 24,000 24,000 4,800 4,800 433 28,800 $ 29,233