I know the answer to question 84 is 2772000 but i am not sure why you would mult

Question

I know the answer to question 84 is 2772000 but i am not sure why you would multiple 9/12. Shouldnt you multiply each expenditure by the time of the months left until the plant is ready and finished? Can someone explain?
[(400000+1200000+1200000+96000)x 9/12] + (1200000 x 6/12) + (800000 x 0/12) = 2772000 Use the following information for questions 82 through 85. On January 2, 2014, Indian River Groves began construction of a new citrus processing plant The automated plant was finished and ready for use on September 30, 2015. Expenditures for the construction were as follows: January 2, 2014 September 1, 2014 December 31, 2014 March 31, 2015 $ 400,000 1,200,000 1,200,000 1,200,000 800,000 LSeptember 30, 2015

Explanation / Answer

Q84. What were the weighted-average accumulated expenditures for 2015 by the end of the construction period?

Amount Capitalised in 2014 = 400000*12/12 * 12% + 1200000*12%*4/12

Amount Capitalised in 2014 = 96000

Amount Accumulated till 2014 = 400000 + 1200000 + 1200000 + 96000 = 2896000

As Multiplication is done with 9/12 is due to Construction is completed on September 2015 which is 9 month from January 2015

So Amount of expenditure incurred is computed on weighted average basis where it is used 9month out of 12 month

Computation of average accumulated expenses for 2015 2896000X9 ÷ 12 2172000 1200000X6 ÷ 12 600000 800000X0 ÷ 12 0 2772000

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