Brief Exercise 102 Hanson Company is constructing a building

Brief Exercise 10-2 Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,932,000 on March 1, $1,308,000 on June 1, and $3,061,900 on December 31. Compute Hanson’s weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated Expenditures

Solution

Date

Amount

Capitalization Period

Weighted-Average Accumulated Expenditures

3/1

$1932000

10/12

$1610000

6/1

$1308000

7/12

763000

12/31

3061900

0

0

6301900

$2373000