BUS2102-Spring 2018-Chapter 6 Fun&Exciting Exercises s Round costs per equivalent unit to S decimals places and everything else to whole amouents Esercise 1) Aussic Yarn Co. is a U.S. producer of woolen yam 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 6,610 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 duction during the month of which 5,120 remained in ending work in process inventory and were asfollows: Beginning 100 percent complete as to materials and 45 percent co mplete as to conversion costs. The cost data are Beginning work in process: Direct materials Direct labor Manufacturing overhead 2,537 $ 7,000 S 1,838 Costs added during August: Direct materials Direct labor $38,990 $17,480 $20,165 Manufacturing overhead Required Prepare a production cost report for the month of August. Exercise 2) At the start of October, Dilbert Pure Extract had work in process inventory consisting of 3,500 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 $47,250 ($18,000 was labor cost and $33,333 was prime cost). During October, the company started 70,700 units and incurred $707,315 of material cost and $650,790 of labor and overhead. The company completed 60,660 units during the month. The units in ending work in process were 75 percent complete with respect to materials and 35 percent complete with respect to conversion costs. Required Prepare a production cost report for the month of August