Prepare journal entries for direct labor costs, the purchase of raw materials, and usage of raw materials.

1. Hal's Heating produces furnaces for commercial buildings. The standard price for a heating element part is $40. A standard quantity of 3 heating elements is expected to be used in each furnace produced. During January, Hal's purchased 1,000 heating elements for $38,000 and used 980 elements, with a cost of $38 each, to produce 320 furnaces. For direct labor, Hals established a standard of 35 hours per furnace. The standard rate is $18 per hour. A total of 10,000 direct labor hours were worked during January, at a cost of $190,000, to produce 320 furnaces. The variable overhead is applied at a standard rate of $15 per direct labor hour. Variable overhead costs totaled $190,000 for the month. A total of 10,000 direct labor hours were worked to produce 320 furnaces. The fixed overhead costs are applied to products based on direct labor hours. Information for the month of January appears as follows. Hal's expected to produce and sell 300 units for the month. Budgeted fixed overhead costs Budgeted direct labor hours Standard cost per direct labor hour Standard direct labor hours per unit Actual production Actual fixed overhead costs $ 231,000 - 10,500 $ 22 35 320 units $ 217,000