FINA $375$ Moser $$ October $23,2024$

Ajax Co$.$ began construction of a new cutter for the U$.$S$.$ Coast Guard on January $1,2018$ and

completed construction of the ship on October $31,2019.$ To finance construction, Ajax took out an

$$8,000,000,2-$year, $6\%$ construction loan on February $1,2018.$ Interest on the loan was to be paid

annually on the anniversary date of the loan and the principal at the end. Ajax has no other

outstanding interest$-$bearing debt. Ajax made the following expenditures in conjunction with this

construction project:

Date Amount

$3/1/2018$ $$1,050,000$

$4/1/2018900,000$

$6/1/2018750,000$

$10/1/20181,000,000$

$12/1/2018600,000$

$3/1/2019900,000$

$9/1/2019250,000$

What is the amount of Ajax$$s cumulative weighted average expenditures during $2018$ related to the

cutter project?

How much interest should Ajax capitalize in $2018$ related to the cutter project?

How much interest should Ajax expense in $2018?$

What amount would appear in Ajax$$s construction in progress $($CIP$)$ account at December $31,2018$