Respuesta :
According to the given data, the weighted average accumulated expenditures for 2025 by the end of the construction period was $ 54,000.
What do you mean by the weighted average accumulated expenditures?
The intersection of expenditure and per unit capitalization time results in weighted average accumulated expenditure.
This number takes into account the specific amount of spending that is outstanding for a given time frame. This makes it possible to calculate the appropriate rate for capitalization.
The weighted average considers the relative frequency or relevance of particular variables in a data set. Sometimes a weighted average is more precise than a basic average.
Here,
Calculation of weighted average accumulated expenditures for 2025:
Date Amount Capitalized Period WAAE
1,Jan $ 300,000 12/12 $ 300,000
1,Sep $ 450,000 4/12 $ 150,000
31,Dec $ 450,000 0/12 0
Total $ 1,200,000 $ 450,000
Interest rate 12%
Interest capitalization in 2025 $ 54,000
Therefore, the the given data, the weighted average accumulated expenditures for 2025 by the end of the construction period was $ 54,000.
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