Answer:
Vaughn Manufacturing
1. The weighted-average accumulated expenditures for 2017 were:
c. $1,200,000.
2. The interest capitalized for 2017 was:
b. $144,000
3. The weighted-average accumulated expenditures for 2018 by the end of the construction period were:  
= $2,546,000.
4. The interest capitalized for 2018 was:
= $267,000.
Explanation:
a) Data and Calculations:
Expenditures for the construction were as follows:
Date                                   Amount of     No. of months  Weighted Average
                                          expenditure                                 Expenditure
2020:
January 2, 2020                 $613,000         12/12                     $613,000
September 1, 2020            1,802,400          4/12                       600,800
December 31, 2020          1,802,400          0/12                        0
Total weighted-average expenditure for 2020 =                $1,213,800
Which is approximately = $1,200,000
Interest capitalized = $144,000 ($1,200,000 * 12%)
Capitalized expenditure by December 31, 2020 = $1,344,000 ($1,200,000 + $144,000)
Date                                   Amount of     No. of months  Weighted Average
                                          expenditure                                 Expenditure
2021:
January 1, 2021                 1,344,000        9/9                   $1,344,000
March 31, 2021                  1,802,400       6/9                      1,201,600
September 30, 2021        1,203,000        0/9                      0
Total weighted-average expenditure for 2020 =           $2,545,600
Which is approximately $2,546,000
Interest capitalized for 2018 = $267,330 ($2,546,000 * 10.5%)
Approximately $267,000