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 in a rate of 100% of labour costs.

 

 The following details are relevant to production in the period:

 

                                      Units              Materials                     Labour and production overheads

 

Opening inventory        200             100% complete              75% complete

 

Closing inventory         100              100% complete              50% 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.