To determine unit cost under a process cost accounting system, equivalent units produced must be calculated if the company has goods in process inventories.

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Under a process cost accounting system, unit cost is determined by dividing the total cost of production by the equivalent units produced. To calculate equivalent units produced, it is necessary to take into account the units that are completed and transferred out of the department, as well as the units that are still in process. This requires calculating the percentage of completion for the units in process and multiplying them by their respective units. Therefore, the statement is true.

To Determine Unit Cost Under a Process Cost Accounting System