Answer:
$2,640,000
Explanation:
Feb 1 $2,040,000*10/12=1,870,000
June 1 $1,320,000*7/12= 770,000
Dec 31 $3,031,130*0=
Total expenditure to be capitalized $2,640,000
Answer:
$2,470,000
Explanation:
Weight of expenditure from March 1 to December 31 (i.e. for 10 months) = 10/12
Weight of expenditure from June 1 to December 31 (i.e. for 7 months) = 7/12
Weight of expenditure on December 31 (i.e. 0 month) = 0
Therefore, we have:
Weighted-average accumulated expenditures = ($2,040,000 × (10/12)) + ($1,320,000 × (7/12)) + ($3,031,130 × 0) = $1,700,000 + $770,000.00 + 0 = $2,470,000
