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On March 1, Imhoff Co. began construction of a small building. Payments of $202,539 were made monthly for several months. The payments begin on the first day of March. The building was completed and ready for occupancy on the first day of June. In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are

Answer :

ABIOLATAIWO2015GO

Answer:

$101,269.5

Explanation:

Calculation to determine the weighted-average accumulated expenditures

Weighted-average accumulated expenditures=$202,539* (3/12 + 2/12 + 1/12)

Weighted-average accumulated expenditures=$202,539*0.5

Weighted-average accumulated expenditures=$101,269.5

Therefore In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are $101,269.5

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