Question

Sage Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,812,000 on March 1, $1,212,000 on June 1, and $3,093,870 on December 31. Compute Sage’s weighted-average accumulated expenditures for interest capitalization purposes.

Calculate Weighted-Average Accumulated Expenditures.

Answer 1

Answer: Weighted-Average Accumulated Expenditures is 22,17,000

Sage Company
Weighted-Average Accumulated Expenditures
Date	Expenditure Amount	Capitalization Period	weighted-average accumulated expenditure
1st March	18,12,000	10\12	15,10,000
1st June	12,12,000	7\12	7,07,000
31st December	30,93,870	0	-
Total	61,17,870		22,17,000

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