Process Costing Journal Entries. Silva Piping Company produces PVC piping in two processing departmentsFabrication 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.

6. Products with a cost of $31,000 are sold to customers.

Required: 1. Prepare journal entries to record each of the previous transactions. 2. In general, how does the process costing system used here differ from a job costing system?