minor differences may occur due to rounding the cost per equivalent unit in step 3. e. Explain the meaning of equivalent units. Production Cost Report: Weighted Average Method. Refer to Exercise 25. Prepare a production cost report for Sydney, Inc., for the month of April using the format shown in Figure 4.9 "Production Cost Report for Desk Products' Assembly Department". Process Costing Journal Entries. Silva Piping Company produces PVC piping in two processing departments- Fabrication and Packaging. Transactions for the month of July are shown as follows. 1. Direct materials totaling $15,000 are requisitioned and placed into production-$7,000 for the Fabrication department and $8,000 for the Packaging department. 2 . Direct labor costs (wages payable) are incurred by each department as follows: Fabrication $4,500 Packaging $6,700 3. Manufacturing overhead costs are applied to each department as follows: Fabrication $20,000 Packaging $14,000 4. Products with a cost of $22,000 are transferred from the Fabrication department to the Packaging department. 5. Products with a cost of $35,000 are completed and transferred from the Packaging department to the finished goods warehouse