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The following data relate to the work in progress of stocks for SAS790 during
November:
Opening work in progress Nil
Finished output to next process 7,000 litres
Closing work in progress 1,200 litres
Degree of completion – direct materials 100%
Degree of completion – direct labour 50%
The total labour cost is £3,800.
The direct labour cost per litre of SAS790 of the equivalent finished production is:
a. £0.45
b. £0.50
c. £0.60
d. £0.63
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