Question

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 $

Answer 1

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.