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In the Week 1 lab assignment for SPA for Polite Spreadsheets, the presenter begins by setting up the assignment and entering numeric values into the cells, noting that the cell format is currently set to general. They proceed to add up the values in column F, rows 5 through 11, by using the sum function from the formulas tab on the ribbon. After completing the calculations, they focus on formatting the cells, specifically changing the number style to accounting for row 5, columns B through F. The presenter highlights how the formatting adjusts the appearance of the numbers, incorporating number signs and commas, before moving on to select row 6, extending the formatting down through rows 11.