The following information relates to questions 20 and 21:

A company operates a process costing system using the first-in-first-out (FIFO) method of valuation. No losses occur in the

process. All materials are input at the commencement of the process. Conversion costs are incurred evenly through the

process.

The following data relate to last period:

Units

Degree of completion

Opening work in progress

1

2,000

60%

Total number of units completed

14,000

Closing work in progress

1

3,000

30%

Costs arising:

Materials

1

51,000

Conversion

193,170