st 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 mass- produced in a continuous fashion. 2. A process cost system is used when each finished 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 flow 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. lize transactions. AP ons on costs E3-2 Harrelson Company ma evenly throughout the process. For the month of April, the work in process accounts show ments: Cooking and Canning. In each process, ma.. the following debits. Canning $ 4,000 Beginning work in process Cooking $ -0- Materials 21,000 9,000 Labor 8,500 7,000 Overhead 31,500 25,800 Costs transferred in 53,000 Instructions Journalize the April transactions. E3-3 The ledger of Custer Company has the following work in process account. Work in Process-Painting 5/1 Balance 5/31 Materials 5/31 Labor 5/31 Overhead 5/31 3,590 5/31 5,160 2,740 1,380 ? Transferred out Balance Production records show that there were 400 units in the beginning inventory, 30% complete, 1,400 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Instructions (a) How many units are in process at May 31? (b) What is the unit materials cost for May? (c) What is the unit conversion cost for May? (d) What is the total cost of units transferred out in May? (e) What is the cost of the May 31 inventory?