Respond that the following statements are TRUE or FALSE:

1) In a production cost report, the number of units to account for must always be greater than the number of units accounted for.

2) A production cost report shows only the calculations for the physical flow of products.

3) The task of summarizing the flow of physical units is one of the four steps involved in the preparation of the production cost report.

4) The number of equivalent units for direct materials and conversion costs must always be equal.

5) The cost amounts that are transferred out from one process to another process become transferred in costs for the receiving process.