XJC Limited makes and sells paints to the home decorating market. During October the company produced 4,810 litres of paint. Normal losses are expected to be 5% of input materials. These normal losses can be sold for 64 pence a litre. 5,000 litres of material were put into the paint making process during October at a cost of £28,535. Conversion costs for the month were £12,000. What is the total cost of actual finished paint production for October?
A) £40,375
B) £40,535
C) £40,695
D) £40,885
Correct Answer:
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