AXL 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:

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 GHS1,800 for materials. In addition GHS4,000 had

been accumulated for labour and overhead costs.

Period costs

Costs incurred during the period were:

Materials GHS19,000

Labour costs GHS19,000

During the period, 2,000 units were passed to Process 2. There were no losses.

The company uses a FIFO method for valuing process costs.