The following information is available for lock-tite company, which produces special-order security products and uses a job order costing system. april 30 may 31 inventories raw materials $ 42,000 $ 32,000 work in process 9,100 19,800 finished goods 64,000 34,600 activities and information for may raw materials purchases (paid with cash) 174,000 factory payroll (paid with cash) 300,000 factory overhead indirect materials 17,000 indirect labor 69,000 other overhead costs 91,000 sales (received in cash) 1,900,000 predetermined overhead rate based on direct labor cost 55 % incurred other overhead costs (record credit to other accounts). application of overhead to work in process. prepare journal entries for the above transactions for the month of may.

agriculture and oil. natural resources, industry.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.