The FIFO method is used by Aztec Inc. in its process costing system. The information below pertains to the activities of the company's first production department for the previous month.

WIP, beginning:

Units in process....................................................................... 100

In terms of materials, the stage of completion is ................... 50%

In terms of conversion, the stage of completion is................. 90%

Costs in the beginning inventory:

Materials cost....................................................................... $260

Conversion cost.................................................................... $3,366

Units started into production during the month........................ 20,000

Units completed and transferred out......................................... 19,800

Costs added to production during the month:

Materials cost.......................................................................... $99,650

Conversion cost....................................................................... $745,329

WIP, ending:

Units in process....................................................................... 300

In terms of materials, the stage of completion is ................... 60%

In terms of conversion, the stage of completion is................. 20%

a. Using the FIFO method of process costing, construct a production cost worksheet with supporting schedules.

b. "In my process-costing system, there's no need for me to get excited about the option between the weighted-average and FIFO approaches. My materials suppliers and I have long-term, fixed-price contracts." Do you agree with this plant supervisor's statement? Please explain!