Complete the following Statement of EU

FIFO methods

Farmers Ltd operates a process costing system. Details of process 1 are as follows:

All materials used are added at the beginning of the process. Labour costs and production overhead costs are incurred evenly as the product goes through the process. Production overheads are absorbed at a rate of 100% of labour costs.

The following details are relevant to production in the period:

UnitsMaterialsLabour and production overheads

Opening inventory200100% complete75% complete

Closing inventory100100% complete50% complete

Opening inventory

Costs associated with these opening units are $1,800 for materials. In addition, $4,000 had been accumulated for Labour and overhead costs.

Period costs: Costs incurred during the period were:

Materials$19,000

Labour$19,000

During the period 2000 units were passed to Process 2 there were no losses.

You are required to calculate the total value of the units transferred to Process2.