Question

Azalea Company began construction on a new office building on Jan. 1 of this year. The building was completed on Sept. 30. Expenditures were made of $200,000 on Jan. 1; $300,000 on Sept. 1; and $300,000 on Dec. 31. The weighted average accumulated expenditures are:

Group of answer choices

$500,000

$300,000

$350,000

$400,000

Answer 1

Answer: $300,000

Explanation

Calculation of The weighted average accumulated expenditures
Date	Actual	Capitalization	Weighted Average
	Expenditure	Period	Accumulated Expenditure
Jan. 1	$ 200,000.00	12/12	$                      200,000.00
Sept. 1	$ 300,000.00	4/12	$                      100,000.00
Dec. 31	$ 300,000.00	0/12	$                                   -
			$ 300,000.00