Question
On January 2, 2020, Vaughn Manufacturing began construction of a new citrus processing plant. The automated plant was finished and ready for use on September
On January 2, 2020, Vaughn Manufacturing began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:
January 2, 2020 $ 613000
September 1, 2020 1800000
December 31, 2020 1800000
March 31, 2021 1800000
September 30, 2021 1202000
Vaughn Manufacturing borrowed $3310000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $13080000 in 7% bonds outstanding in 2020 and 2021. What were the weighted-average accumulated expenditures for 2021 by the end of the construction period?
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