Novak Company is constructing a building. Construction began on February 1 and was completed on December...

Novak Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,944,000 on March 1, $1,224,000 on June 1, and $3,072,650 on December 31. Compute Novak’s weighted-average accumulated expenditures for interest capitalization purposes.

Weighted-Average Accumulated Expenditures = $

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Expenditure	Accumulated Expenditure	No. of month for average	Weighted Average Accumulated Expenditure
$ 1,944,000.00 Mar 1	$ 1,944,000.00	3	$ 486,000.00	[1944000 x 3/12]
$ 1,224,000.00 Jun 1	$ 3,168,000.00	7	$ 1,848,000.00	[3168000x7/12]
$ 3,072,650.00 Dec 31	$ 6,240,650.00	0	$ -	[6240650 x 0/12]
Answer: Weighted Average Accumulated Expenditure			$ 2,334,000.00

Answer = $ 2,334,000.00

ekkarill92 answered 1 year ago

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