Kansas supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. it produces parts in three separate departments: molding, assembling, and packaging. the following information was obtained for the assembling department for the month of april. work in process on april 1 had 110,000 units made up of the following. amount degree of completion prior department costs transferred in from the molding department $ 152,900 100 % costs added by the assembling department direct materials $ 89,100 100 % direct labor 37,540 60 % manufacturing overhead 25,070 50 % $ 151,710 work in process, april 1 $ 304,610 during april, 510,000 units were transferred in from the molding department at a cost of $708,900. the assembling department added the following costs. direct materials $ 379,080 direct labor 196,400 manufacturing overhead 119,980 total costs added $ 695,460 assembling finished 410,000 units and transferred them to the packaging department. at april 30, 210,000 units were still in work-in-process inventory. the degree of completion of work-in-process inventory at april 30 was as follows. direct materials 80 % direct labor 70 manufacturing overhead 35 required: prepare a production cost report using the weighted-average method. (round "cost per equivalent unit" to 2 decimal places.)

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.