Exercise 1) Aussie Yarn Co. is a U.S. producer of woolen yarn made from wool imported from Australia. Raw wool is processed, spun, and finished before being shipped out to knitting and weaving companies. Material is added in the beginning of processing and conversion costs are added evenly throughout processing. Aussie began the month of August with 8,324 units in process that were 100 percent complete as to materials and 60 percent complete as to labor and overhead. They started 19,946 units into production during the month of which 7,700 remained in ending work in process inventory and were 100 percent complete as to materials and 55 percent complete as to conversion costs. The cost data are as follows: Beginning work in process: Direct materials $ 8,080 Direct labor $ 2,838 Manufacturing overhead $ 3,357 Costs added during August: Direct materials $20,165 Direct labor $17,480 Manufacturing overhead $38,990 Required: Prepare a production cost report for the month of August (use template shown in examples).