BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -To use the weighted average model, one divides the cost of the goods that are available for sale by the number of those units still on the shelf. This calculation yields the weighted average cost per unit-a figure that can then be used to assign a cost to both ending inventory and the cost of goods sold.

Detailed explanation-2: -To calculate the weighted average cost, divide the total cost of goods purchased by the number of units available for sale. To find the cost of goods available for sale, you’ll need the total amount of beginning inventory and recent purchases.

Detailed explanation-3: -Average cost method uses the weighted average of all inventory purchased in a period to assign value to the cost of goods sold (COGS) as well as the cost of goods still available for sale.

Detailed explanation-4: -To calculate average cost, take the cost of goods available for sale and divide it by the total number of items from the beginning inventory and purchases. This means that the cost of all 15 pairs is treated as if they were $11 each. Therefore, $11 is the average cost for this item.