What are the weighted-average accumulated expenditures?

Name: What are the weighted-average accumulated expenditures?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To calculate weighted-average accumulated expenditures, we need to multiply each expenditure by the fraction of the construction period that has elapsed when the expenditure was made.

Weighted-average accumulated expenditures = 
[(2/12) x $4,800,000] + [(5/12) x $3,960,000] + [(12/12) x $6,000,000] 
= $800,000 + $1,650,000 + $6,000,000 
= $8,450,000

Therefore, the best choice is B.

What Are the Weighted-Average Accumulated Expenditures