(a) Define the term equivalent production and state when the principle is used.

(b) During May 2013, M Wurzel \& Co. Limited's output was 4,000 finished items plus 600 partly finished items. There was no work in progress on 1 May 2013.

\begin{tabular}{lcccc}

& Materials & Labour & Overheads & Total \\

Total cost ( $£$ ) & 8,172 & 7,120 & 5,196 & 20,488 \\

WIP degree of completion \% & 90 & 75 & 55 & -

\end{tabular}

Calculate for the month of May 2013:

(i) the total equivalent production for each cost element;

(ii) the cost per complete unit;

(iii) the value of the work in progress.