Tamar co. manufactures a single product in one department. all direct materials are added at the beginning of the manufacturing process. conversion costs are added evenly throughout the process. during may, the company completed and transferred 23,500 units of product to finished goods inventory. its 5,400 units of beginning work in process consisted of $17,300 of direct materials and $329,940 of conversion costs. it has 3,600 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. during the month, $497,600 of direct material costs and $2,519,100 of conversion costs were charged to production.

prepare the journal entry dated may 31 to transfer the cost of completed units to finished goods inventory. (do not round intermediate calculations. round your final answers to the nearest whole dollar.)

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.