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Robert Mallory has prepared

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E3-1 Robert Mallory has prepared the following list of statements about process cost
accounting.

1. Process cost systems are used to apply costs to similar products that are massproduced
in a continuous fashion.
2. A process cost system is used when each fi nished unit is indistinguishable from another.
3. Companies that produce soft drinks, motion pictures, and computer chips would all
use process cost accounting.
4. In a process cost system, costs are tracked by individual jobs.
5. Job order costing and process costing track different manufacturing cost elements.
6. Both job order costing and process costing account for direct materials, direct labor,
and manufacturing overhead.
7. Costs fl ow through the accounts in the same basic way for both job order costing and
process costing.
8. In a process cost system, only one work in process account is used.
9. In a process cost system, costs are summarized in a job cost sheet.
10. In a process cost system, the unit cost is total manufacturing costs for the period
divided by the equivalent units produced during the period.

Instructions
Identify each statement as true or false. If false, indicate how to correct the statement.

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