XJC Limited Makes and Sells Paints to the Home Decorating

Multiple Choice

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