On January $1,2024,$ a company began construction of a new warehouse. The building was finished and ready for use on September $30,2025.$ Expenditures on the project were as follows:

January $1,2024$ $ $326,000$

September $1,2024$ $ $477,000$

December $31,2024$ $ $477,000$

March $31,2025$ $ $477,000$

September $30,2025$ $ $326,000$

The company had $$5,900,000$ in $12\%$ bonds outstanding through both years.

The average accumulated expenditures for $2025$ by the end of the construction period was:

Multiple Choice

$$1,338,200.$

$$2,083,000.$

Incorrect

$$1,039,500.$

$$1,656,200.$

SIMILAR SOLUTION I SAW ELSEWHERE WAS THIS Working Notes:

Calculate the weighted average accumulated expenditures:

Year $2024$: Weighted$-$Average accumulated expenditure

Date

Amount

$*$

Capitalization period

$(=)$

Weighted Average Accumulated Expenditures

$1-$Jan$-24$

$$321,000$

$*$

$12/12$

$(=)$

$$321,000$

$1-$Sep$-24$

$$471,000$

$*$

$4/12$

$(=)$

$$157,000$

$31-$Dec$-24$

$$471,000$

$*$

$0/12$

$(=)$

$$0$

Total

$$1,263,000$

$$478,000$

Therefore, the weighted average accumulated expenditures is ascertained.

Explanation:

Weighted average accumulated expenditure is calculated by multiplying the expenditures of the product with the capitalization period. BUT IT WASN'T FOR $2025$ do not use chatgpt and make sure its exact answer as the four multiple choice. everyone is doing it wrong.