how did they get the 138,000????

On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March 1 $ 225,000 April 1 $ 222,000 May 1 540,000 June 1 810,000 July 1 300,000 The building was completed and occupied on July 1. To help pay for construction $150,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $1,500,000, 10% note issued two years ago. Instructions (a) Calculate the weighted average accumulated expenditures. (b) Calculate avoidable interest. Expert Answer o Bhawna answered this 7.745 answers Was this answer helpful? 4 O Answer:(a) Date Expenditure Capitalization Period Weighted-Average Accum. Exp. 1-Mar 225000 4/12 75000 1-Apr 222000 3/12 55500 1-May 540000 2/12 90000 1-Jun 810000 1/12 67500 1-Jul 300000 0/12 0 Weighted-Average Accum. Exp. 288000 Answer:(b) Rate Avoidable interest Weighted Average Accum. Exp 150000 0.12 18000 138000 0.1 13800 288000 31800