The reason that the AccordionItem doesn't resize properly is because there is a bug in one of its control Parts - ExpandableContentControl. The issue is described here.
I think you can either fix its source code or, more easily, replace this control from its default style with a normal ContentControl. I have included a style here with a normal ContentControl and tested it in the code that @JohnNicholas provided, and it works.
    <Style TargetType="toolkit:AccordionItem">
        <Setter Property="BorderThickness" Value="1"/>
        <Setter Property="BorderBrush" Value="#FFECECEC"/>
        <Setter Property="Background" Value="White"/>
        <Setter Property="Margin" Value="0"/>
        <Setter Property="Padding" Value="0"/>
        <Setter Property="HorizontalAlignment" Value="Stretch"/>
        <Setter Property="VerticalAlignment" Value="Stretch"/>
        <Setter Property="HorizontalContentAlignment" Value="Left"/>
        <Setter Property="VerticalContentAlignment" Value="Top"/>
        <Setter Property="IsTabStop" Value="False"/>
        <Setter Property="Template">
            <Setter.Value>
                <ControlTemplate TargetType="toolkit:AccordionItem">
                    <Grid Background="{TemplateBinding Background}" HorizontalAlignment="{TemplateBinding HorizontalAlignment}" VerticalAlignment="{TemplateBinding VerticalAlignment}">
                        <VisualStateManager.VisualStateGroups>
                            <VisualStateGroup x:Name="CommonStates">
                                <VisualStateGroup.Transitions>
                                    <VisualTransition GeneratedDuration="0"/>
                                </VisualStateGroup.Transitions>
                                <VisualState x:Name="Normal"/>
                                <VisualState x:Name="Pressed"/>
                                <VisualState x:Name="MouseOver"/>
                                <VisualState x:Name="Disabled"/>
                            </VisualStateGroup>
                            <VisualStateGroup x:Name="FocusStates">
                                <VisualState x:Name="Focused"/>
                                <VisualState x:Name="Unfocused"/>
                            </VisualStateGroup>
                            <VisualStateGroup x:Name="ExpansionStates">
                                <VisualStateGroup.Transitions>
                                    <VisualTransition GeneratedDuration="0"/>
                                </VisualStateGroup.Transitions>
                                <VisualState x:Name="Collapsed">
                                    <Storyboard>
                                        <ObjectAnimationUsingKeyFrames Storyboard.TargetProperty="(UIElement.Visibility)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0">
                                                <DiscreteObjectKeyFrame.Value>
                                                    <Visibility>Collapsed</Visibility>
                                                </DiscreteObjectKeyFrame.Value>
                                            </DiscreteObjectKeyFrame>
                                        </ObjectAnimationUsingKeyFrames>
                                    </Storyboard>
                                </VisualState>
                                <VisualState x:Name="Expanded">
                                </VisualState>
                            </VisualStateGroup>
                            <VisualStateGroup x:Name="LockedStates">
                                <VisualStateGroup.Transitions>
                                    <VisualTransition GeneratedDuration="0"/>
                                </VisualStateGroup.Transitions>
                                <VisualState x:Name="Locked">
                                    <Storyboard>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="IsEnabled" Storyboard.TargetName="ExpanderButton">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="False"/>
                                        </ObjectAnimationUsingKeyFrames>
                                    </Storyboard>
                                </VisualState>
                                <VisualState x:Name="Unlocked">
                                    <Storyboard>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="IsEnabled" Storyboard.TargetName="ExpanderButton">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="True"/>
                                        </ObjectAnimationUsingKeyFrames>
                                    </Storyboard>
                                </VisualState>
                            </VisualStateGroup>
                            <VisualStateGroup x:Name="ExpandDirectionStates">
                                <VisualStateGroup.Transitions>
                                    <VisualTransition GeneratedDuration="0"/>
                                </VisualStateGroup.Transitions>
                                <VisualState x:Name="ExpandDown">
                                    <Storyboard>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="Height" Storyboard.TargetName="rd1">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="*"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="Width" Storyboard.TargetName="cd0">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="*"/>
                                        </ObjectAnimationUsingKeyFrames>
                                    </Storyboard>
                                </VisualState>
                                <VisualState x:Name="ExpandUp">
                                    <Storyboard>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.Row)" Storyboard.TargetName="ExpanderButton">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="1"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.Row)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="0"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="Height" Storyboard.TargetName="rd0">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="*"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="Width" Storyboard.TargetName="cd0">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="*"/>
                                        </ObjectAnimationUsingKeyFrames>
                                    </Storyboard>
                                </VisualState>
                                <VisualState x:Name="ExpandLeft">
                                    <Storyboard>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.ColumnSpan)" Storyboard.TargetName="ExpanderButton">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="1"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.ColumnSpan)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="1"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.RowSpan)" Storyboard.TargetName="ExpanderButton">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="2"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.RowSpan)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="2"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.Column)" Storyboard.TargetName="ExpanderButton">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="1"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.Row)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="0"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="Height" Storyboard.TargetName="rd0">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="*"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="Width" Storyboard.TargetName="cd0">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="*"/>
                                        </ObjectAnimationUsingKeyFrames>
                                    </Storyboard>
                                </VisualState>
                                <VisualState x:Name="ExpandRight">
                                    <Storyboard>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.ColumnSpan)" Storyboard.TargetName="ExpanderButton">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="1"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.ColumnSpan)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="1"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.RowSpan)" Storyboard.TargetName="ExpanderButton">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="2"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.RowSpan)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="2"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.Row)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="0"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="(Grid.Column)" Storyboard.TargetName="ExpandSite">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="1"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="Height" Storyboard.TargetName="rd0">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="*"/>
                                        </ObjectAnimationUsingKeyFrames>
                                        <ObjectAnimationUsingKeyFrames Duration="0" Storyboard.TargetProperty="Width" Storyboard.TargetName="cd1">
                                            <DiscreteObjectKeyFrame KeyTime="0" Value="*"/>
                                        </ObjectAnimationUsingKeyFrames>
                                    </Storyboard>
                                </VisualState>
                            </VisualStateGroup>
                        </VisualStateManager.VisualStateGroups>
                        <Border x:Name="Background" BorderBrush="{TemplateBinding BorderBrush}" BorderThickness="{TemplateBinding BorderThickness}" CornerRadius="1,1,1,1" Padding="{TemplateBinding Padding}">
                            <Grid>
                                <Grid.ColumnDefinitions>
                                    <ColumnDefinition x:Name="cd0" Width="Auto"/>
                                    <ColumnDefinition x:Name="cd1" Width="Auto"/>
                                </Grid.ColumnDefinitions>
                                <Grid.RowDefinitions>
                                    <RowDefinition x:Name="rd0" Height="Auto"/>
                                    <RowDefinition x:Name="rd1" Height="Auto"/>
                                </Grid.RowDefinitions>
                                <toolkit:AccordionButton x:Name="ExpanderButton" Background="{TemplateBinding Background}" ContentTemplate="{TemplateBinding HeaderTemplate}" Content="{TemplateBinding Header}" Foreground="{TemplateBinding Foreground}" FontWeight="{TemplateBinding FontWeight}" FontStyle="{TemplateBinding FontStyle}" FontStretch="{TemplateBinding FontStretch}" FontSize="{TemplateBinding FontSize}" FontFamily="{TemplateBinding FontFamily}" HorizontalAlignment="{TemplateBinding HorizontalAlignment}" HorizontalContentAlignment="{TemplateBinding HorizontalContentAlignment}" IsTabStop="True" IsChecked="{TemplateBinding IsSelected}" Margin="0,0,0,0" Padding="0,0,0,0" Grid.Row="0" Style="{TemplateBinding AccordionButtonStyle}" VerticalAlignment="{TemplateBinding VerticalAlignment}" VerticalContentAlignment="{TemplateBinding VerticalContentAlignment}"/>
                                <ContentControl x:Name="ExpandSite" ContentTemplate="{TemplateBinding ContentTemplate}" Content="{TemplateBinding Content}" Foreground="{TemplateBinding Foreground}" FontWeight="{TemplateBinding FontWeight}" FontStyle="{TemplateBinding FontStyle}" FontStretch="{TemplateBinding FontStretch}" FontSize="{TemplateBinding FontSize}" FontFamily="{TemplateBinding FontFamily}" HorizontalAlignment="{TemplateBinding HorizontalAlignment}" HorizontalContentAlignment="{TemplateBinding HorizontalContentAlignment}" IsTabStop="False" Margin="0,0,0,0" Grid.Row="1" Style="{TemplateBinding ExpandableContentControlStyle}" VerticalAlignment="{TemplateBinding VerticalAlignment}" VerticalContentAlignment="{TemplateBinding VerticalContentAlignment}"/>
                            </Grid>
                        </Border>
                    </Grid>
                </ControlTemplate>
            </Setter.Value>
        </Setter>
    </Style>
PS. If you want to animate the expanding/collapsing you can just define your own animation in the AccordionItem's Collapsed and Expanded visual states.
It is really a late reply and hope it can be of any help. :)