Problem:
On March 1, Felt Co. began construction of a small building. Payments of $120,000 were made monthly for three months beginning March 1. The building was completed and ready for occupancy on June 1.
Required:
Question: In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are
a. $30,000.
b. $60,000.
c. $120,000.
d. $240,000.
Note: Please show how you came up with the solution.