Question

On March 1, Coronado Industries began construction of a small building. Payments of $814800 were made monthly for three months beginning March 1. The building was completed and ready for occupancy on June 1. In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are

Answer 1

The weighted-average accumulated expenditures = $407400

Step-by-step explanation:

The weighted-average accumulated expenditures = $814800 (3/12 + 2/12 + 1/12) = $814800 (6/12) = $407400