Problem 10-10 Interest capitalization; weighted-average method [LO10-7]

On January 1, 2013, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2014.

Expenditures on the project were as follows:

January 1, 2013	$	1,200,000
March 1, 2013		690,000
June 30, 2013		450,000
October 1, 2013		660,000
January 31, 2014		945,000
April 30, 2014		1,260,000
August 31, 2014		2,250,000

On January 1, 2013, the company obtained a $3 million construction loan with a 12% interest rate. The loan was outstanding all of 2013 and 2014. The company