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Oriole Company is constructing a building. Construction began in 2020 and the building was completed 12/31/20....

Oriole Company is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Oriole made payments to the construction company of $3054000 on 7/1, $6336000 on 9/1, and $5920000 on 12/31. Weighted-average accumulated expenditures were

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Answer #1

The weighted-average accumulated expenditures were calculated as follows:

$
    Payment on 7/1 ( $3,054,000 * 6/12)          1,527,000
    Payment on 9/1 ($6,336,000 * 4/12)          2,112,000
    Payment on 12/31 ($5920000 * 0)              -
Weighted-average accumulated expenditures       $3,639,000

The weighted-average accumulated expenditures were $3,639,000.

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