Wooly Woolens is a manufacturer of wool cloth. Below is the production data for February 2022: Units data: Units in beginning WIP inventory Units started Units completed Costs data: WIP, beginning inventory Direct materials Conversion Cost added during current period Direct materials Conversion 10,000 units 20,000 units 25,000 units $6,000 $2,600 $30,000 $17,000 All direct materials are added at the beginning of the process. Beginning WIP was only half complete as to conversion, while ending WIP was 60% complete as to conversion. Required: 1. Prepare a production cost report for the month of February 2022 using the weighted- average method. [15 marks] 2. Explain the differences between weighted average and FIFO method. Give examples by referring to Wooly's data (no calculation is needed). [5 marks] 3. Assume that for the following months, there has been an increasing trend in production costs. In light of this fact, the production manager chose to use the weighted-average method so that the higher unit costs can be mixed with lower unit costs in previous period, hence can make his performance looks better. Discuss whether the production manager's action is ethical or not. Give justifications for your answer. [5 marks]