On March 1, Cucumber Co. began construction of a small building. The following expenditures were incurred for construction:
- March 1 $ 120,000 April 1 $ 150,000
- May 1 300,000 June 1 570,000
- July 1 250,000
The building was completed and occupied on July 1. To help pay for construction $100,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $1,000,000, 10% note issued two years ago.
Instructions
(a) Calculate the weighted-average accumulated expenditures.
Capitalization Weighted-Average Date Expenditures Period Accum. Expend.