Question

Sheffield Corp. is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Sheffield made payments to the construction company of $2880000 on 7/1, $6504000 on 9/1, and $5860000 on 12/31. Weighted-average accumulated expenditures were

Answer 1

Answer: $‭3,608,000‬

Step-by-step explanation:

Payments before the end of 2020 were;

• $2,880,000 on 7/1. 6 months left till 12/31.
• $6,504,000 on 9/1. 4 months left till 12/31

Weighted-average accumulated expenditures;

= (2,880,000 * 6/12 months) + (6,504,000 * 4/12 months)

= $‭3,608,000‬