Exercise 1) Woolly-Woolly Co. is a producer of woolen yarn made from wool imported from other countries. 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, Woolly-Woolly began the month of August with 5,000 units in process that were 100 percent complete as to materials and 55 percent complete as to labor and overhead. They started 25,000 units into production during the month of which 6.000 remained in ending work in process inventory and were 100 percent complete as to materials and 40 percent complete as to conversion costs. The cost data are as follows: Beginning work in process: Direct materials Direct labor Manufacturing overhead $ 4,000 S 1,050 $ 1,450 Costs added during August: Direct materials Direct labor Manufacturing overhead $22.280 $ 9,990 $11,522 Required: Prepare a production cost report for the month of August. Exercise 2) At the start of October, ILA Corporation had work in process inventory consisting of 2.000 units that were 90 percent complete with respect to materials and 50 percent complete with respect to conversion costs. The cost of the units was $13,500 ($9,000 of material cost and $4.500 of labor and overhead). During October, the company started 40.000 units and incurred $202,090 of material cost and $185,940 of labor and overhead. The company completed 41,000 units during the month and 1,000 units were in process at the end of October. The units in ending work in process were 80 percent complete with respect to materials and 40 percent complete with respect to conversion costs. Required: Prepare a production cost report for the month of October