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On April 1, Paine Co. began construction of a small building. Payments of $234,960 were made...

On April 1, Paine Co. began construction of a small building. Payments of $234,960 were made monthly for four months beginning on April 1. The building was completed and ready for occupancy on August 1. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted-average accumulated expenditures on the building by completing the schedule below:

Date Expenditures Capitalization Period Weighted-Ave. Accum. Expend.
$ $
  
$

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Paine Co.
Weighted-Average accumulated expenditure
Date Amount Capitalization period Weighted Average Accumulated Expenditures
01-Apr $    234,960 4/12 $                  78,320
01-May $    234,960 3/12 $                  58,740
01-Jun $    234,960 2/12 $                  39,160
01-Jul $    234,960 1/12 $                  19,580
$    939,840 $                195,800

ekkarill92 answered 2 years ago
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