Waterway Fabricators produces protective covers for smart phones. Since the covers must be customized to each smart phone model, Waterway uses a job order costing system. On September 1, the company reported the following inventory balances:
Direct Materials - $29,300
Work in Process - $151,000
Finished Goods - $257,000

During September, the following events occurred:
1. Waterway purchased direct materials costing $1,041,000 on account.
2. Waterway used $427,000 in direct materials in production.
3. Waterway’s employees clocked 24,000 direct labor hours at an average wage rate of $13.01 per direct labor hour.
4. The company incurred $179,000 in manufacturing overhead, including $26,000 in indirect labor costs.
5. Using direct labor hours as the application base, the company applied $164,000 of manufacturing overhead to jobs worked on in September.
6. The company completed production on jobs costing $855,000.
7. The company delivered jobs costing $1,075,000 to customers.

Calculate the ending September balance of the Direct Materials, Work in Process, and Finished Goods Inventory accounts.
Ending September Balance
Direct Materials $.
Work in Process $.
Finished Goods $.

Materials Ending Inventory            $ 29,914  

Ending Work In Process                     214420

Closing Finished Goods              $ 37,000

Explanation:

                                                                            Dr                     Cr

Direct Materials (opening Inventory)                $29,300

Add Purchases                                                  $1,041,000

Less Ending Inventory                                    $ 29,914  

Direct Materials Used                                                                   $427,000

Conversion Costs

Add Direct Labor                                              $ 312240

Factory Over Head                                            $ 179,000           $491240    

Add Beginning Work In Process                                                    $151,000

Less Ending Work In Process                                                         214420

Cost Of Goods Manufactured                                                       $855,000

Add opening  Finished Goods                                                     $257,000

Cost of Goods Available for Sale                                                   $1112,000

Less Closing Finished Goods                                                          $ 37,000

Cost Of Goods Sold                                                                         $1,075,000

Working  

Costs incurred during the period

Direct Materials Used In Production  $427,000

Direct Labor = 24000*$13.01=            $ 312240

Manufacturing Overheads                  $ 179,000

answer( isp );

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.