INSTRUCTIONS: Answer the following problems and show your solutions in good accounting form. EXERCISE 1 WILLOW Company manufactures a single product in two process departments. Costs and production data to the month of November follows: COSTS Work in process, beg. (50% materials, 30% labor, 20% overhead) Materials Labor Factory overhead QUANTITY Work in process, beg. (1/2 complete) Started in process Completed and transferred Work in process, end. (40% to complete) REQUIREMENTS: ASSEMBLY FINISHING 9,750 18,000 64,000 47,250 85,800 31,500 47,200 3,000 4,000 33,000 30,000 25,000 5,000 6,000 1. Using FIFO, compute for the total cost transferred to finished goods if the losses were discovered at the end of process and were considered abnormal. 2. Using average costing, compute for the ending balance of work in process that will be included in the statement of financial position if the losses were discovered at the end of process and were considered abnormal.