Required Information [The following information applies to the questions displayed below.] In the audit of Western Mills, the auditors wish to test the costs assigned to manufactured goods. During the year, the company has produced 2,000 production lots with a total recorded cost of $5.9 million. The auditors select a sample of 200 production lots with an aggregate book value of $600,000 and vouch the assigned costs to the supporting documentation. Their audit discloses misstatements in the cost of 52 of the 200 production lots; after adjustment for these misstatements, the audited value of the sample is $582,000. Required: Show how the auditors would compute an estimate of the total cost of production lots manufactured during the year using each a following sampling plans. (Do not compute the allowance for sampling risk or the risk of incorrect acceptance of the estimates.) (1) Mean-per-unit estimation. (2) Ratio estimation. (3) Difference estimation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Mean-per-unit estimation. Estimated population mean Estimated total audited value Required 1 Required 2 > < Prev 3 of 3 Next Question no....pages

Required Information [The following information applies to the questions displayed below.] In the audit of Western Mills, the auditors wish to test the costs assigned to manufactured goods. During the year, the company has produced 2,000 production lots with a total recorded cost of $5.9 million. The auditors select a sample of 200 production lots with an aggregate book value of $600,000 and vouch the assigned costs to the supporting documentation. Their audit discloses misstatements in the cost of 52 of the 200 production lots; after adjustment for these misstatements, the audited value of the sample is $582,000. Required: Show how the auditors would compute an estimate of the total cost of production lots manufactured during the year using each a following sampling plans. (Do not compute the allowance for sampling risk or the risk of incorrect acceptance of the estimates.) (1) Mean-per-unit estimation. (2) Ratio estimation. (3) Difference estimation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Mean-per-unit estimation. Estimated population mean Estimated total audited value Required 1 Required 2 > < Prev 3 of 3 Next Question no....pages

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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