Question

Gutierrez Company is constructing a building. Construction began in 2014 and the building was completed on December 31, 2014. Gutierrez made payments to the construction company of $2,500,000 on 7/1/14, $5,500,000 on 9/1/14, and $5,000,000 on 12/31/14. What is the amount of weighted average accumulated expenditures

Answer 1

Answer:

$3,083,333.33

Explanation:

Weighted average accumulated expenditures = ($2,500,000*6/12) + ($5,500,000*4/12)

Weighted average accumulated expenditures = $1,250,000 + $1,833,333.33

Weighted average accumulated expenditures = $3,083,333.33

So, the amount of weighted average accumulated expenditures is $3,083,333.33.