Final answer:
The weighted-average accumulated expenditures for Imhoff Co., where monthly payments of $400,000 were made for four months beginning March 1 until completion on June 1, is $1,600,000.
Step-by-step explanation:
Calculating Weighted-Average Accumulated Expenditures
In the scenario provided, Imhoff Co. began construction of a building and made monthly payments of $400,000 for four months starting from March 1.
The building was completed by June 1. To calculate the weighted-average accumulated expenditures, which are used to determine the amount of interest to capitalize, we need to take into account both the amount of each payment and the length of time that each payment has been invested in the construction project.
Since all payments are of the same amount and are invested for an equal duration within this timeline (March 1 to June 1), the weighted-average accumulated expenditures will be the total of all payments made.
The total payments made are 4 payments of $400,000 each, totaling $1,600,000. Since interest capitalization requires us to consider the time period the funds are used, the full amount would be considered the weighted average since the funds were fully utilized in the construction by June 1.
Thus, the weighted-average accumulated expenditures are $1,600,000.