Pujols,CPA,performed a Nonstatistical Sampling Plan to Examine the Inventory Balances

Multiple Choice

Pujols,CPA,performed a nonstatistical sampling plan to examine the inventory balances of Wieserbud Brewing Inc.,and estimated the account balance based on the ratio of audited value to recorded balances.He audited 120 items from a sample and found an audited value of $24,600.The sample had a recorded value of $30,000.If the entire inventory contained 2,400 items and the total recorded value of the inventory was $480,000,the estimated account balance using nonstatistical methods is

A) $393,600.
B) $474,500.
C) $480,000.
D) $500,000.