Flint 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 Flint’s weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated Expenditures $
Date | Expenditure amount | Capitalization period | Weighted-average accumulated expenditure |
Mar 1st | $ 1,812,000 | 10/12 | $ 1,510,000 |
Jun 1st | $ 1,212,000 | 7/12 | $ 707,000 |
Dec 31st | $ 3,093,870 | 0 | $ 0 |
Total | $ 6,117,870 | $ 2,217,000 |
Answer: Weighted average accumulated expenditure = $2,217,000.
Flint Company is constructing a building. Construction began on February 1 and was completed on December...
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