I would like help with my auditing class practice problem. I need completed work display and it include a book value and sampling population. (I can supply book value when upon agreement. Required 1. Identify the audit objectives that are accomplished by this test. 2. Determine sample size based on the following audit judgments. a. Tolerable misstatement is assessed at $325,000. b. The risk of incorrect acceptance is assessed at 37 percent. c. Anticipated misstatement is assessed at $100,000. 3. Develop a scenario that is consistent with setting the risk of incorrect acceptance at 37 percent. 4. Select a PPS sample of the above inventory population using the sample size determined in (2) above. 5. Explain the tests that you would perform to test the correctness of pricing of raw materials, work in progress, and finished goods. (The student may wish to consult Chapter 16.) 6. Determine the amount of projected population misstatement based on your sample. 7. Considering your quantitative and qualitative results, develop a statistical conclusion and an audit conclusion based on your sample. Must show all work in details

(Mt. Hood FurniturePPS sampling problem) You have been assigned the task of testing the accuracy of the final inventory compilation for Mt. Hood Furniture. You may assume that you have separately observed the inventory and that you are satisfied that the inventory was accurately counted. However, you need to test that quantities were accurately transcribed to the final accumulation and valuation of inventory and that the inventory is correctly priced and accumulated. The table beginning on page 617 presents the audited values associated with Mt. Hood's pricing and accumulation of all items in inventory. The book values will be given to you by your professor. You may assume that you have performed the tests to determine the proper pricing for raw materials, work in process, and finished goods. The student should understand that the auditor will normally obtain this information only for the items included in the sample. Required 1. Identify the audit objectives that are accomplished by this test. 2. Determine sample size based on the following audit judgments. a. Tolerable misstatement is assessed at $325,000. b. The risk of incorrect acceptance is assessed at 37 percent. c. Anticipated misstatement is assessed at $100,000. 3. Develop a scenario that is consistent with setting the risk of incorrect acceptance at 37 percent. 4. Select a PPS sample of the above inventory population using the sample size determined in (2) above. 5. Explain the tests that you would perform to test the correctness of pricing of raw materials, work in progress, and finished goods. (The student may wish to consult Chapter 16.) 6. Determine the amount of projected population misstatement based on your sample. 7. Considering your quantitative and qualitative results, develop a statistical conclusion and an audit conclusion based on your sample. Stock Number Audited Quantity Audited Price Audited Amount Stock Number Audited Quantity Audited Price Audited Amount Finished Goods 10001 13 $ 250.00 $ 3,250.00 10201 11 $ 250.00 $ 2,750.00 10002 12 $ 275.00 $ 3,300.00 10202 11 $ 275.00 $3,025.00 10003 15 $ 270.00 $ 4,050.00 10203 16 $ 270.00 $ 4,320.0 10004 11 $ 200.00 $ 2,200.00 10204 11 $ 200.00 $ 2,200.00 10005 10 $ 400.00 $ 4,000.00 10205 9 $ 400.00 $ 3,600.00 10006 10 $ 410.00 $ 4,100.00 10206 12 $ 410.00 $ 4,920.00 10007 8 $ 400.00 $ 3,200.00 10207 10 $ 400.00 $ 4,000.00 10008 9 $ 410.00 $ 3,690.00 10208 9 $ 410.00 $ 3,690.00 10009 20 $ 750.00 $ 15,000.00 10209 16 $ 750.00 $ 12,000.00 10010 9 $ 750.00 $ 6,750.00 10210 13 $ 750.00 $ 9,750.00 10011 12 $ 800.00 $ 9,600.00 10211 14 $ 800.00 $ 11,200.00 10012 14 $ 800.00 $ 11,200.00 10212 8 $ 800.00 $ 6,400.00 8 $ 750.00 $ 6,000.00 10013 10213 2 $ 745.00 $ 1,490.00 10014 10015 10016 10017 10018 11 6 10 3 11 $ 750.00 $ 800.00 $ 800.00 $ 900.00 $ 900.00 $ 8,250.00 $ 4,800.00 $ 8,000.00 $ 2,700.00 $ 9,900.00 10019 10020 10021 10022 10023 10024 10025 10101 10102 10103 10104 10105 10106 10107 10108 10109 10110 10111 10112 10113 10114 10115 10116 10117 10118 10119 10120 10121 10122 10123 10124 10125 10401 10402 10403 10404 10405 10406 5 8 4 4 2 5 2 8 8 12 15 12 12 11 9 10 8 8 8 6 12 8 9 5 7 4 4 7 6 4 7 5 15 14 13 9 12 9 $ 1,000.00 $ 1,000.00 $ 1,250.00 $ 1,250.00 $ 1,250.00 $ 1,275.00 $ 1,300.00 $ 250.00 $ 275.00 $ 270.00 $ 200.00 $ 400.00 $ 410.00 $ 400.00 $ 410.00 $ 750.00 $ 750.00 $ 800.00 $ 800.00 $ 750.00 $ 750.00 $ 800.00 $ 800.00 $ 900.00 $ 900.00 $ 1,000.00 $ 1,000.00 $ 1,250.00 $ 1,250.00 $ 1,250.00 $ 1,275.00 $ 1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $ 5,000.00 $ 8,000.00 $ 5,000.00 $ 5,000.00 $ 2,500.00 $ 6,375.00 $ 2,600.00 $ 2,000.00 $ 2,200.00 $ 3,240.00 $ 3,000.00 $ 4,800.00 $ 4,920.00 $ 4,400.00 $ 3,690.00 $ 7,500.00 $ 6,000.00 $ 6,400.00 $ 6,400.00 $ 4,500.00 $ 9,000.00 $ 6,400.00 $ 7,200.00 $ 4,500.00 $ 6,300.00 $ 4,000.00 $ 4,000.00 $ 8,750.00 $ 7,500.00 $ 5,000.00 $ 8,925.00 $ 6,500.00 $3,750.00 $3,850.00 $3,510.00 $1,800.00 $4,800.00 $3,690.00 10214 10215 10216 10217 10218 10219 10220 10221 10222 10223 10224 10225 10301 10302 10303 10304 10305 10306 10307 10308 10309 10310 10311 10312 10313 10314 10315 10316 10317 10318 10319 10320 10321 10322 10323 10324 10325 10601 10602 10603 10604 10605 10606 4 5 7 8 9 11 5 4 6 7 5 4 15 16 18 11 13 13 17 14 22 16 12 14 18 17 12 14 14 17 10 12 19 15 13 12 15 13 12 17 11 10 15 $ 750.00 $ 800.00 $ 800.00 $ 900.00 $ 900.00 $ 3,000.00 $ 4,000.00 $ 5,600.00 $ 7,200.00 $ 8,100.00 $ 1,000.00 $ 1,000.00 $ 1,250.00 $ 1,250.00 $ 1,250.00 $ 1,275.00 $ 1,300.00 $ 250.00 $ 275.00 $ 270.00 $ 200.00 $ 400.00 $ 410.00 $ 400.00 $ 410.00 $ 750.00 $ 750.00 $ 800.00 $ 800.00 $ 750.00 $ 750.00 $ 800.00 $ 800.00 $ 900.00 $ 900.00 $ 1,000.00 $ 1,000.00 $ 1,250.00 $ 1,250.00 $ 1,250.00 $ 1,275.00 $ 1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $ 11,000.00 $ 5,000.00 $ 5,000.00 $ 7,500.00 $ 8,750.00 $ 6,375.00 $ 5,200.00 $ 3,750.00 $4,400.00 $ 4,860.00 $ 2,200.00 $ 5,200.00 $ 5,330.00 $ 6,800.00 $ 5,740.00 $ 16,500.00 $ 12,000.00 $ 9,600.00 $ 11,200.00 $ 13,500.00 $ 12,750.00 $ 9,600.00 $ 11,200.00 $ 12,600.00 $ 15,300.00 $ 10,000.00 $ 12,000.00 $ 23,750.00 $ 18,750.00 $ 16,250.00 $ 15,300.00 $ 19,500.00 $3,250.00 $3,300.00 $4,590.00 $2,200.00 $4,000.00 $6,150.00 10407 10408 10409 10410 10411 10412 10413 10414 10415 10416 10417 10418 10419 10420 10421 10422 10423 10424 10425 10501 10502 10503 10504 10505 10506 10507 10508 10509 10510 10511 10512 10513 10514 10515 10516 10517 10518 10519 10520 10521 10522 10523 10524 10525 10801 15 12 17 12 12 12 17 15 11 13 12 15 9 11 16 15 12 10 12 8 6 9 11 12 11 7 9 14 16 14 12 18 19 7 7 4 4 8 8 4 4 4 5 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $6,000.00 $4,920.00 $12,750.00 $9,000.00 $9,600.00 $9,600.00 $12,750.00 $11,250.00 $8,800.00 $10,400.00 $10,800.00 $13,500.00 $9,000.00 $11,000.00 $20,000.00 $18,750.00 $15,000.00 $12,750.00 $15,600.00 $2,000.00 $1,650.00 $2,430.00 $2,200.00 $4,800.00 $4,510.00 $2,800.00 $3,690.00 $10,500.00 $12,000.00 $11,200.00 $9,600.00 $13,500.00 $14,250.00 $5,600.00 $5,600.00 $3,600.00 $3,600.00 $8,000.00 $8,000.00 $5,000.00 $5,000.00 $5,000.00 $6,375.00 10607 10608 10609 10610 10611 10612 10613 10614 10615 10616 10617 10618 10619 10620 10621 10622 10623 10624 10625 10701 10702 10703 10704 10705 10706 10707 10708 10709 10710 10711 10712 10713 10714 10715 10716 10717 10718 10719 10720 10721 10722 10723 10724 12 12 6 4 9 9 8 2 9 9 6 7 4 6 4 4 4 5 4 6 5 6 6 4 8 2 6 8 8 2 8 6 5 10 5 9 7 2 9 4 5 6 2 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $400.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,405.00 $4,800.00 $4,920.00 $4,500.00 $3,000.00 $7,200.00 $7,200.00 $6,000.00 $1,500.00 $7,200.00 $7,200.00 $5,400.00 $6,300.00 $4,000.00 $6,000.00 $5,000.00 $5,000.00 $5,000.00 $6,375.00 $5,200.00 $2,400.00 $2,250.00 $2,820.00 $2,820.00 $2,400.00 $4,880.00 $1,200.00 $3,660.00 $6,400.00 $6,400.00 $1,800.00 $7,200.00 $5,700.00 $4,750.00 $9,500.00 $4,875.00 $8,775.00 $7,350.00 $2,100.00 $9,450.00 $4,700.00 $5,875.00 $7,800.00 $2,810.00 4 5 $1,300.00 $400.00 $5,200.00 $2,000.00 10725 11001 3 13 $1,500.00 $400.00 $4,500.00 $5,200.00 10802 10803 10804 10805 10806 10807 10808 10809 10810 10811 10812 10813 10814 10815 10816 10817 10818 10819 10820 10821 10822 10823 10824 10825 10901 10902 10903 10904 10905 10906 10907 10908 10909 10910 10911 10912 10913 10914 10915 10916 10917 10918 10919 10920 10921 10922 5 6 7 8 3 4 8 6 3 9 8 4 6 4 5 8 8 6 6 7 5 4 8 5 9 9 11 11 7 11 8 12 7 7 4 9 10 11 13 9 12 10 6 10 9 12 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,400.00 $1,500.00 $400.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $2,250.00 $2,820.00 $3,290.00 $4,800.00 $1,830.00 $2,400.00 $4,880.00 $4,800.00 $2,400.00 $8,100.00 $7,200.00 $3,800.00 $5,700.00 $3,800.00 $4,875.00 $7,800.00 $8,400.00 $6,300.00 $6,300.00 $8,225.00 $5,875.00 $5,200.00 $11,200.00 $7,500.00 $3,600.00 $4,050.00 $5,170.00 $5,170.00 $4,200.00 $6,710.00 $4,800.00 $7,320.00 $5,600.00 $5,600.00 $3,600.00 $8,100.00 $9,500.00 $10,450.00 $12,350.00 $8,775.00 $11,700.00 $10,500.00 $6,300.00 $10,500.00 $10,575.00 $14,100.00 11002 11003 11004 11005 11006 11007 11008 11009 11010 11011 11012 11013 11014 11015 11016 11017 11018 11019 11020 11021 11022 11023 11024 11025 11201 11202 11203 11204 11205 11206 11207 11208 11209 11210 11211 11212 11213 11214 11215 11216 11217 11218 11219 11220 11221 11222 14 18 19 25 23 17 16 14 19 15 14 19 22 24 22 17 15 10 13 10 14 18 18 11 4 3 2 3 4 5 7 9 8 10 6 5 8 3 8 2 7 5 5 5 6 5 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,400.00 $1,500.00 $400.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $6,300.00 $8,460.00 $8,930.00 $15,000.00 $14,030.00 $10,200.00 $9,760.00 $11,200.00 $15,200.00 $13,500.00 $12,600.00 $18,050.00 $20,900.00 $22,800.00 $21,450.00 $16,575.00 $15,750.00 $10,500.00 $13,650.00 $11,750.00 $16,450.00 $23,400.00 $25,200.00 $16,500.00 $1,600.00 $1,350.00 $940.00 $1,410.00 $2,400.00 $3,050.00 $4,200.00 $5,490.00 $6,400.00 $8,000.00 $5,400.00 $4,500.00 $7,600.00 $2,850.00 $7,600.00 $1,950.00 $6,825.00 $5,250.00 $5,250.00 $5,250.00 $7,050.00 $5,875.00 10923 10924 10925 11301 11302 11303 11304 11305 11306 11307 11308 11309 11310 11311 11312 11313 11314 11315 11316 11317 11318 11319 11320 11321 11322 11323 11324 11325 11401 11402 11403 11404 11405 11406 11407 11408 11409 11410 11411 11412 11413 11414 11415 11416 11417 11418 8 8 6 14 16 17 18 17 18 13 14 12 18 11 13 13 14 11 12 15 15 11 12 10 9 9 10 5 5 8 3 4 8 10 6 7 5 8 9 7 11 15 10 9 13 11 $1,300.00 $1,400.00 $1,500.00 $400.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,400.00 $1,500.00 $800.00 $800.00 $875.00 $875.00 $900.00 $900.00 $900.00 $900.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $10,400.00 $11,200.00 $9,000.00 $5,600.00 $7,200.00 $7,990.00 $8,460.00 $10,200.00 $10,980.00 $7,800.00 $8,540.00 $9,600.00 $14,400.00 $9,900.00 $11,700.00 $12,350.00 $13,300.00 $10,450.00 $11,700.00 $14,625.00 $15,750.00 $11,550.00 $12,600.00 $11,750.00 $10,575.00 $11,700.00 $14,000.00 $7,500.00 $4,000.00 $6,400.00 $2,625.00 $3,500.00 $7,200.00 $9,000.00 $5,400.00 $6,300.00 $5,500.00 $8,800.00 $9,900.00 $7,700.00 $12,100.00 $18,750.00 $12,500.00 $11,250.00 $16,250.00 $13,750.00 11223 11224 11225 11501 11502 11503 11504 11505 11506 11507 11508 11509 11510 11511 11512 11513 11514 11515 11516 11517 11518 11519 11520 11521 11522 11523 11524 11525 11601 11602 11603 11604 11605 11606 11607 11608 11609 11610 11611 11612 11613 11614 11615 11616 11617 11618 4 5 1 11 18 12 14 11 14 12 13 15 11 14 13 10 15 10 14 11 13 10 12 10 8 7 7 8 6 6 8 7 11 8 5 7 6 9 7 3 4 10 7 6 11 9 $1,300.00 $1,400.00 $1,500.00 $800.00 $800.00 $875.00 $875.00 $900.00 $900.00 $900.00 $900.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,400.00 $1,400.00 $2,000.00 $2,000.00 $3,250.00 $3,250.00 $2,500.00 $800.00 $800.00 $875.00 $875.00 $900.00 $900.00 $900.00 $900.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $5,200.00 $7,000.00 $1,500.00 $8,800.00 $14,400.00 $10,500.00 $12,250.00 $9,900.00 $12,600.00 $10,800.00 $11,700.00 $16,500.00 $12,100.00 $15,400.00 $14,300.00 $11,000.00 $18,750.00 $12,500.00 $17,500.00 $13,750.00 $16,250.00 $14,000.00 $16,800.00 $20,000.00 $16,000.00 $22,750.00 $22,750.00 $20,000.00 $4,800.00 $4,800.00 $7,000.00 $6,125.00 $9,900.00 $7,200.00 $4,500.00 $6,300.00 $6,600.00 $9,900.00 $7,700.00 $3,300.00 $4,400.00 $12,500.00 $8,750.00 $7,500.00 $13,750.00 $11,250.00 11419 11420 11421 11422 11423 11424 11425 11701 11702 11703 11704 11705 11706 11707 11708 11709 11710 11711 11712 11713 11714 11715 11716 11717 11718 11719 11720 11721 11722 11723 11724 11725 11801 11802 11803 11804 11805 11806 11807 11808 11809 11810 11811 11812 11813 11814 9 5 5 7 6 5 6 3 9 6 6 10 12 8 7 7 7 8 6 5 4 3 5 2 4 6 4 4 5 5 6 1 6 5 11 5 8 7 6 7 3 2 5 8 7 4 $1,400.00 $1,400.00 $2,000.00 $2,000.00 $3,250.00 $3,250.00 $2,500.00 $800.00 $800.00 $875.00 $875.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,500.00 $1,500.00 $1,600.00 $1,600.00 $1,450.00 $1,450.00 $1,700.00 $1,700.00 $1,800.00 $1,800.00 $1,400.00 $1,400.00 $2,000.00 $2,000.00 $3,250.00 $3,250.00 $5,500.00 $600.00 $600.00 $700.00 $700.00 $900.00 $900.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $12,600.00 $7,000.00 $10,000.00 $14,000.00 $19,500.00 $16,250.00 $15,000.00 $2,400.00 $7,200.00 $5,250.00 $5,250.00 $11,000.00 $13,200.00 $8,800.00 $7,700.00 $10,500.00 $10,500.00 $12,800.00 $9,600.00 $7,250.00 $5,800.00 $5,100.00 $8,500.00 $3,600.00 $7,200.00 $8,400.00 $5,600.00 $8,000.00 $10,000.00 $16,250.00 $19,500.00 $5,500.00 $3,600.00 $3,000.00 $7,700.00 $3,500.00 $7,200.00 $6,300.00 $9,150.00 $10,675.00 $4,575.00 $3,050.00 $7,625.00 $12,200.00 $10,675.00 $6,100.00 11619 11620 11621 11622 11623 11624 11625 11901 11902 11903 11904 11905 11906 11907 11908 11909 11910 11911 11912 11913 11914 11915 11916 11917 11918 11919 11920 11921 11922 11923 11924 11925 12001 12002 12003 12004 12005 12006 12007 12008 12009 12010 12011 12012 12013 12014 13 10 7 9 7 5 4 7 6 10 6 7 5 4 7 6 5 6 5 6 8 6 8 5 8 6 8 6 7 4 5 5 9 7 14 16 10 10 8 9 3 6 7 9 5 7 $1,400.00 $1,400.00 $2,000.00 $2,000.00 $3,250.00 $3,250.00 $2,500.00 $600.00 $600.00 $700.00 $700.00 $900.00 $900.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,500.00 $2,500.00 $3,500.00 $600.00 $600.00 $700.00 $700.00 $900.00 $900.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $18,200.00 $14,000.00 $14,000.00 $18,000.00 $22,750.00 $16,250.00 $10,000.00 $4,200.00 $3,600.00 $7,000.00 $4,200.00 $6,300.00 $4,500.00 $6,100.00 $10,675.00 $9,150.00 $7,625.00 $9,150.00 $7,625.00 $9,150.00 $12,200.00 $14,850.00 $19,800.00 $12,375.00 $19,800.00 $14,850.00 $19,800.00 $14,850.00 $17,325.00 $10,000.00 $12,500.00 $17,500.00 $5,400.00 $4,200.00 $9,800.00 $11,200.00 $9,000.00 $9,000.00 $12,200.00 $13,725.00 $4,575.00 $9,150.00 $10,675.00 $13,725.00 $7,625.00 $10,675.00 11815 11816 11817 11818 11819 11820 11821 11822 11823 11824 11825 8 9 6 4 4 5 7 4 8 3 2 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,500.00 $2,500.00 $3,500.00 Raw Materials 20001 2056 20002 5090 20003 6344 20004 10052 20005 9900 20006 1233 20007 1145 20008 1130 20009 1030 20010 1288 20011 10066 20012 18300 20013 18587 20014 19525 20015 13222 20016 3606 20017 4723 20018 1434 20019 6782 20020 2644 20021 4833 20022 4521 20023 3640 20024 5703 Small Tools $37,989.00 Inventory - $12.80 $15.20 $10.50 $12.95 $10.95 $43.00 $43.00 $43.00 $43.00 $43.00 $5.85 $5.85 $5.85 $5.85 $5.85 $25.30 $25.30 $25.30 $25.30 $25.30 $27.30 $27.30 $27.30 $27.30 11222 - $19,800.00 $22,275.00 $14,850.00 $9,900.00 $9,900.00 $12,375.00 $17,325.00 $9,900.00 $20,000.00 $7,500.00 $7,000.00 12015 12016 12017 12018 12019 12020 12021 12022 12023 12024 12025 11 8 8 6 8 5 5 9 7 5 5 Work in Progress $26,316.80 10005 $77,368.00 10006 $66,612.00 10007 $130,173.40 10008 $108,405.00 11201 $53,019.00 11202 $49,235.00 11203 $48,590.00 11204 $44,290.00 11205 $55,384.00 11206 $58,886.10 11207 $107,055.00 11208 $108,733.95 11209 $114,221.25 11210 $77,348.70 11211 $91,231.80 11212 $119,491.90 11213 $36,280.20 11214 $171,584.60 11215 $66,893.20 11216 $131,940.90 11217 $123,423.30 11218 $99,372.00 11219 $155,691.90 11220 11221 10 $875.00 - 11223 11224 11225 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,500.00 $2,500.00 $3,500.00 $27,225.00 $19,800.00 $19,800.00 $14,850.00 $19,800.00 $12,375.00 $12,375.00 $22,275.00 $17,500.00 $12,500.00 $17,500.00 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 $350.00 $350.00 $300.00 $310.00 $350.00 $350.00 $370.00 $370.00 $450.00 $460.00 $450.00 $460.00 $600.00 $600.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $825.00 $825.00 $825.00 $875.00 $8,750.00 $3,500.00 $3,500.00 $3,000.00 $3,100.00 $3,500.00 $3,500.00 $3,700.00 $3,700.00 $4,500.00 $4,600.00 $4,500.00 $4,600.00 $6,000.00 $6,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $8,250.00 $8,250.00 $8,250.00 $8,750.00 10 5 5 $900.00 $9,000.00 $1,000.00 $5,000.00 $1,100.00 $5,500.00 Professor's given book value A couple of hints: The inventory is materially misstated. Use a random start that includes line #11 (that way you will get the same result). Do not round down for the sample size. Make sure you attach all of your calculations for case 13-36 BOOK VALUE Per Inventory Records Quantity Amount $ of stock # Stock # Cumulative Amount Finishe d Goods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 10001 10002 10003 10004 10005 10006 10007 10008 10009 10010 10011 10012 10013 10014 10015 10016 10017 10018 10019 10020 10021 10022 10023 10024 10025 10101 10102 10103 10104 10105 10106 10107 10108 10109 10110 10111 10112 10113 10114 10115 10116 10117 10118 10119 10120 10121 10122 10123 10124 10125 10201 10202 10203 10204 10205 10206 10207 10208 10209 10210 10211 10212 10213 10214 10215 10216 10217 10218 10219 10220 10221 10222 10223 10224 10225 10301 10302 10303 10304 10305 10306 10307 10308 10309 10310 10311 10312 10313 10314 10315 10316 10317 10318 10319 10320 10321 10322 10323 10324 10325 10401 10402 10403 10404 10405 10406 10407 10408 10409 10410 10411 10412 10413 10414 10415 10416 10417 10418 10419 10420 10421 10422 10423 10424 10425 10501 10502 10503 10504 10505 10506 10507 10508 10509 10510 10511 10512 10513 10514 10515 10516 10517 10518 10519 10520 10521 10522 10523 10524 10525 10601 10602 10603 10604 10605 10606 10607 10608 10609 10610 10611 10612 10613 10614 10615 10616 10617 10618 10619 10620 10621 10622 10623 10624 10625 10701 10702 10703 10704 10705 10706 10707 10708 10709 10710 10711 10712 10713 10714 10715 10716 10717 10718 10719 10720 10721 10722 10723 10724 10725 10801 10802 10803 10804 10805 10806 10807 10808 10809 10810 10811 10812 10813 10814 10815 10816 10817 10818 10819 10820 10821 10822 10823 10824 10825 10901 10902 10903 10904 10905 10906 10907 10908 10909 10910 10911 10912 10913 10914 10915 10916 10917 10918 10919 10920 10921 10922 10923 10924 10925 11001 11002 11003 11004 11005 11006 11007 11008 11009 11010 11011 11012 11013 11014 11015 11016 11017 11018 11019 11020 11021 11022 11023 11024 11025 11201 11202 11203 11204 11205 11206 11207 11208 11209 11210 11211 11212 11213 11214 11215 11216 11217 11218 11219 11220 11221 11222 11223 11224 11225 11301 11302 11303 11304 11305 11306 11307 11308 11309 11310 11311 11312 11313 11314 11315 11316 11317 11318 11319 11320 11321 11322 11323 11324 11325 11401 11402 11403 11404 11405 11406 11407 11408 11409 11410 11411 11412 11413 11414 11415 11416 11417 11418 11419 11420 11421 11422 11423 11424 11425 11501 11502 11503 11504 11505 11506 11507 11508 11509 11510 11511 11512 11513 11514 11515 11516 11517 11518 11519 11520 11521 11522 11523 11524 11525 11601 11602 11603 11604 11605 11606 11607 11608 11609 11610 11611 11612 11613 11614 11615 11616 11617 11618 11619 11620 11621 11622 11623 11624 11625 11701 11702 11703 11704 11705 11706 11707 11708 11709 11710 11711 11712 11713 11714 11715 11716 11717 11718 11719 11720 11721 11722 11723 11724 11725 11801 11802 11803 11804 11805 11806 11807 11808 11809 11810 11811 11812 11813 11814 11815 11816 11817 11818 11819 11820 11821 11822 11823 11824 11825 11901 11902 11903 11904 11905 11906 11907 11908 11909 11910 11911 11912 11913 11914 11915 11916 11917 11918 11919 11920 11921 11922 11923 11924 11925 12001 12002 12003 12004 12005 12006 12007 12008 12009 12010 12011 12012 12013 12014 12015 12016 12017 12018 12019 12020 12021 12022 12023 12024 12025 13 12 15 11 10 10 8 9 20 9 12 14 8 11 6 10 3 11 5 8 4 4 2 5 2 8 8 12 15 12 12 11 9 10 8 8 8 6 12 8 9 5 7 4 4 7 6 4 7 5 11 11 16 11 9 12 10 9 16 13 14 8 2 4 5 7 8 9 11 5 4 6 7 5 4 15 16 18 11 13 13 17 14 22 16 12 14 18 17 12 14 14 17 10 12 19 15 13 12 15 15 16 18 11 13 13 17 14 22 16 12 14 18 17 12 14 14 17 10 12 19 15 13 12 15 8 6 9 11 12 11 7 9 14 16 14 12 18 19 7 7 4 4 8 8 4 4 4 5 4 13 12 17 11 10 15 12 12 6 4 9 9 8 2 9 9 6 7 4 6 4 4 4 5 4 6 5 6 6 4 8 2 6 8 8 2 8 6 5 10 5 9 7 2 9 4 5 6 2 3 5 5 6 7 8 3 4 8 6 3 9 8 4 6 4 5 8 8 6 6 7 5 4 8 5 9 9 11 11 7 11 8 12 7 7 4 9 10 11 13 9 12 10 6 10 9 12 8 8 6 13 14 18 19 25 23 17 16 14 19 15 14 19 22 24 22 17 15 10 13 10 14 18 18 11 4 3 2 3 4 5 7 9 8 10 6 5 8 3 8 2 7 5 5 5 6 5 4 5 1 14 16 17 18 17 18 13 14 12 18 11 13 13 14 11 12 15 15 11 12 10 9 9 10 5 5 8 3 4 8 10 6 7 5 8 9 7 11 15 10 9 13 11 9 5 5 7 6 5 6 11 18 14 16 11 14 12 13 15 11 14 13 10 15 10 14 11 13 10 12 10 8 7 7 8 6 6 8 7 11 8 5 7 6 9 7 3 4 10 7 6 11 9 13 10 7 9 7 5 4 3 11 6 6 10 12 8 7 7 7 8 6 5 4 3 5 2 4 6 4 4 5 5 6 1 6 5 11 5 8 7 6 7 3 2 5 8 7 4 8 9 6 4 4 5 7 4 8 3 2 7 6 10 6 7 5 4 7 6 5 6 5 6 8 6 8 5 8 6 8 6 7 4 5 5 9 7 14 16 10 10 8 9 3 6 7 9 5 7 11 8 8 6 8 5 5 9 7 5 5 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $745.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $400.00 $410.00 $750.00 $750.00 $810.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $250.00 $275.00 $270.00 $200.00 $400.00 $410.00 $400.00 $410.00 $750.00 $750.00 $800.00 $800.00 $750.00 $750.00 $800.00 $800.00 $900.00 $900.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,275.00 $1,300.00 $450.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,405.00 $1,500.00 $450.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,400.00 $1,500.00 $450.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,400.00 $1,500.00 $450.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,400.00 $1,500.00 $450.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,400.00 $1,500.00 $450.00 $450.00 $470.00 $470.00 $600.00 $610.00 $600.00 $610.00 $800.00 $800.00 $900.00 $900.00 $950.00 $950.00 $950.00 $975.00 $975.00 $1,050.00 $1,050.00 $1,050.00 $1,175.00 $1,175.00 $1,300.00 $1,400.00 $1,500.00 $800.00 $800.00 $875.00 $875.00 $900.00 $900.00 $900.00 $900.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,400.00 $1,400.00 $2,000.00 $2,000.00 $3,250.00 $3,250.00 $2,500.00 $800.00 $800.00 $875.00 $875.00 $900.00 $900.00 $900.00 $900.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,400.00 $1,400.00 $2,000.00 $2,000.00 $3,250.00 $3,250.00 $2,500.00 $800.00 $800.00 $875.00 $875.00 $900.00 $900.00 $900.00 $900.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,400.00 $1,400.00 $2,000.00 $2,000.00 $3,250.00 $3,250.00 $2,500.00 $800.00 $800.00 $875.00 $875.00 $1,100.00 $1,100.00 $1,100.00 $1,100.00 $1,500.00 $1,500.00 $1,600.00 $1,600.00 $1,450.00 $1,450.00 $1,700.00 $1,700.00 $1,800.00 $1,800.00 $1,400.00 $1,400.00 $2,000.00 $2,000.00 $3,250.00 $3,250.00 $5,500.00 $600.00 $600.00 $700.00 $700.00 $900.00 $900.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,500.00 $2,500.00 $3,500.00 $600.00 $600.00 $700.00 $700.00 $900.00 $900.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,500.00 $2,500.00 $3,500.00 $600.00 $600.00 $700.00 $700.00 $900.00 $900.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $1,525.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,475.00 $2,500.00 $2,500.00 $3,500.00 $3,250.00 $3,300.00 $4,050.00 $2,200.00 $4,000.00 $4,100.00 $3,200.00 $3,690.00 $15,000.00 $6,750.00 $9,600.00 $11,200.00 $6,000.00 $8,250.00 $4,800.00 $8,000.00 $2,700.00 $9,900.00 $5,000.00 $8,000.00 $5,000.00 $5,000.00 $2,500.00 $6,375.00 $2,600.00 $2,000.00 $2,200.00 $3,240.00 $3,000.00 $4,800.00 $4,920.00 $4,400.00 $3,690.00 $7,500.00 $6,000.00 $6,400.00 $6,400.00 $4,500.00 $9,000.00 $6,400.00 $7,200.00 $4,500.00 $6,300.00 $4,000.00 $4,000.00 $8,750.00 $7,500.00 $5,000.00 $8,925.00 $6,500.00 $2,750.00 $3,025.00 $4,320.00 $2,200.00 $3,600.00 $4,920.00 $4,000.00 $3,690.00 $12,000.00 $9,750.00 $11,200.00 $6,400.00 $1,490.00 $3,000.00 $4,000.00 $5,600.00 $7,200.00 $8,100.00 $11,000.00 $5,000.00 $5,000.00 $7,500.00 $8,750.00 $6,375.00 $5,200.00 $3,750.00 $4,400.00 $4,860.00 $2,200.00 $5,200.00 $5,330.00 $6,800.00 $5,740.00 $16,500.00 $12,000.00 $9,600.00 $11,200.00 $13,500.00 $12,750.00 $9,600.00 $11,200.00 $12,600.00 $15,300.00 $10,000.00 $12,000.00 $23,750.00 $18,750.00 $16,250.00 $15,300.00 $19,500.00 $3,750.00 $4,400.00 $4,860.00 $2,200.00 $5,200.00 $5,330.00 $6,800.00 $5,740.00 $16,500.00 $12,000.00 $9,600.00 $11,200.00 $13,500.00 $12,750.00 $9,600.00 $11,200.00 $12,600.00 $15,300.00 $10,000.00 $12,000.00 $23,750.00 $18,750.00 $16,250.00 $15,300.00 $19,500.00 $2,000.00 $1,650.00 $2,430.00 $2,200.00 $4,800.00 $4,510.00 $2,800.00 $3,690.00 $10,500.00 $12,000.00 $11,340.00 $9,600.00 $13,500.00 $14,250.00 $5,600.00 $5,600.00 $3,600.00 $3,600.00 $8,000.00 $8,000.00 $5,000.00 $5,000.00 $5,000.00 $6,375.00 $5,200.00 $3,250.00 $3,300.00 $4,590.00 $2,200.00 $4,000.00 $6,150.00 $4,800.00 $4,920.00 $4,500.00 $3,000.00 $7,200.00 $7,200.00 $6,000.00 $1,500.00 $7,200.00 $7,200.00 $5,400.00 $6,300.00 $4,000.00 $6,000.00 $5,000.00 $5,000.00 $5,000.00 $6,375.00 $5,200.00 $2,700.00 $2,250.00 $2,820.00 $2,820.00 $2,400.00 $4,880.00 $1,200.00 $3,660.00 $6,400.00 $6,400.00 $1,800.00 $7,200.00 $5,700.00 $4,750.00 $9,500.00 $4,875.00 $8,775.00 $7,350.00 $2,100.00 $9,450.00 $4,700.00 $5,875.00 $7,800.00 $2,810.00 $4,500.00 $2,250.00 $2,250.00 $2,820.00 $3,290.00 $4,800.00 $1,830.00 $2,400.00 $4,880.00 $4,800.00 $2,400.00 $8,100.00 $7,200.00 $3,800.00 $5,700.00 $3,800.00 $4,875.00 $7,800.00 $8,400.00 $6,300.00 $6,300.00 $8,225.00 $5,875.00 $5,200.00 $11,200.00 $7,500.00 $4,050.00 $4,050.00 $5,170.00 $5,170.00 $4,200.00 $6,710.00 $4,800.00 $7,320.00 $5,600.00 $5,600.00 $3,600.00 $8,100.00 $9,500.00 $10,450.00 $12,350.00 $8,775.00 $11,700.00 $10,500.00 $6,300.00 $10,500.00 $10,575.00 $14,100.00 $10,400.00 $11,200.00 $9,000.00 $5,850.00 $6,300.00 $8,460.00 $8,930.00 $15,000.00 $14,030.00 $10,200.00 $9,760.00 $11,200.00 $15,200.00 $13,500.00 $12,600.00 $18,050.00 $20,900.00 $22,800.00 $21,450.00 $16,575.00 $15,750.00 $10,500.00 $13,650.00 $11,750.00 $16,450.00 $23,400.00 $25,200.00 $16,500.00 $1,800.00 $1,350.00 $940.00 $1,410.00 $2,400.00 $3,050.00 $4,200.00 $5,490.00 $6,400.00 $8,000.00 $5,400.00 $4,500.00 $7,600.00 $2,850.00 $7,600.00 $1,950.00 $6,825.00 $5,250.00 $5,250.00 $5,250.00 $7,050.00 $5,875.00 $5,200.00 $7,000.00 $1,500.00 $6,300.00 $7,200.00 $7,990.00 $8,460.00 $10,200.00 $10,980.00 $7,800.00 $8,540.00 $9,600.00 $14,400.00 $9,900.00 $11,700.00 $12,350.00 $13,300.00 $10,450.00 $11,700.00 $14,625.00 $15,750.00 $11,550.00 $12,600.00 $11,750.00 $10,575.00 $11,700.00 $14,000.00 $7,500.00 $4,000.00 $6,400.00 $2,625.00 $3,500.00 $7,200.00 $9,000.00 $5,400.00 $6,300.00 $5,500.00 $8,800.00 $9,900.00 $7,700.00 $12,100.00 $18,750.00 $12,500.00 $11,250.00 $16,250.00 $13,750.00 $12,600.00 $7,000.00 $10,000.00 $14,000.00 $19,500.00 $16,250.00 $15,000.00 $8,800.00 $14,400.00 $12,250.00 $14,000.00 $9,900.00 $12,600.00 $10,800.00 $11,700.00 $16,500.00 $12,100.00 $15,400.00 $14,300.00 $11,000.00 $18,750.00 $12,500.00 $17,500.00 $13,750.00 $16,250.00 $14,000.00 $16,800.00 $20,000.00 $16,000.00 $22,750.00 $22,750.00 $20,000.00 $4,800.00 $4,800.00 $7,000.00 $6,125.00 $9,900.00 $7,200.00 $4,500.00 $6,300.00 $6,600.00 $9,900.00 $7,700.00 $3,300.00 $4,400.00 $12,500.00 $8,750.00 $7,500.00 $13,750.00 $11,250.00 $18,200.00 $14,000.00 $14,000.00 $18,000.00 $22,750.00 $16,250.00 $10,000.00 $2,400.00 $8,800.00 $5,250.00 $5,250.00 $11,000.00 $13,200.00 $8,800.00 $7,700.00 $10,500.00 $10,500.00 $12,800.00 $9,600.00 $7,250.00 $5,800.00 $5,100.00 $8,500.00 $3,600.00 $7,200.00 $8,400.00 $5,600.00 $8,000.00 $10,000.00 $16,250.00 $19,500.00 $5,500.00 $3,600.00 $3,000.00 $7,700.00 $3,500.00 $7,200.00 $6,300.00 $9,150.00 $10,675.00 $4,575.00 $3,050.00 $7,625.00 $12,200.00 $10,675.00 $6,100.00 $19,800.00 $22,275.00 $14,850.00 $9,900.00 $9,900.00 $12,375.00 $17,325.00 $9,900.00 $20,000.00 $7,500.00 $7,000.00 $4,200.00 $3,600.00 $7,000.00 $4,200.00 $6,300.00 $4,500.00 $6,100.00 $10,675.00 $9,150.00 $7,625.00 $9,150.00 $7,625.00 $9,150.00 $12,200.00 $14,850.00 $19,800.00 $12,375.00 $19,800.00 $14,850.00 $19,800.00 $14,850.00 $17,325.00 $10,000.00 $12,500.00 $17,500.00 $5,400.00 $4,200.00 $9,800.00 $11,200.00 $9,000.00 $9,000.00 $12,200.00 $13,725.00 $4,575.00 $9,150.00 $10,675.00 $13,725.00 $7,625.00 $10,675.00 $27,225.00 $19,800.00 $19,800.00 $14,850.00 $19,800.00 $12,375.00 $12,375.00 $22,275.00 $17,500.00 $12,500.00 $17,500.00 $3,250.00 $6,550.00 $10,600.00 $12,800.00 $16,800.00 $20,900.00 $24,100.00 $27,790.00 $42,790.00 $49,540.00 $59,140.00 $70,340.00 $76,340.00 $84,590.00 $89,390.00 $97,390.00 $100,090.00 $109,990.00 $114,990.00 $122,990.00 $127,990.00 $132,990.00 $135,490.00 $141,865.00 $144,465.00 $146,465.00 $148,665.00 $151,905.00 $154,905.00 $159,705.00 $164,625.00 $169,025.00 $172,715.00 $180,215.00 $186,215.00 $192,615.00 $199,015.00 $203,515.00 $212,515.00 $218,915.00 $226,115.00 $230,615.00 $236,915.00 $240,915.00 $244,915.00 $253,665.00 $261,165.00 $266,165.00 $275,090.00 $281,590.00 $284,340.00 $287,365.00 $291,685.00 $293,885.00 $297,485.00 $302,405.00 $306,405.00 $310,095.00 $322,095.00 $331,845.00 $343,045.00 $349,445.00 $350,935.00 $353,935.00 $357,935.00 $363,535.00 $370,735.00 $378,835.00 $389,835.00 $394,835.00 $399,835.00 $407,335.00 $416,085.00 $422,460.00 $427,660.00 $431,410.00 $435,810.00 $440,670.00 $442,870.00 $448,070.00 $453,400.00 $460,200.00 $465,940.00 $482,440.00 $494,440.00 $504,040.00 $515,240.00 $528,740.00 $541,490.00 $551,090.00 $562,290.00 $574,890.00 $590,190.00 $600,190.00 $612,190.00 $635,940.00 $654,690.00 $670,940.00 $686,240.00 $705,740.00 $709,490.00 $713,890.00 $718,750.00 $720,950.00 $726,150.00 $731,480.00 $738,280.00 $744,020.00 $760,520.00 $772,520.00 $782,120.00 $793,320.00 $806,820.00 $819,570.00 $829,170.00 $840,370.00 $852,970.00 $868,270.00 $878,270.00 $890,270.00 $914,020.00 $932,770.00 $949,020.00 $964,320.00 $983,820.00 $985,820.00 $987,470.00 $989,900.00 $992,100.00 $996,900.00 $1,001,410.00 $1,004,210.00 $1,007,900.00 $1,018,400.00 $1,030,400.00 $1,041,740.00 $1,051,340.00 $1,064,840.00 $1,079,090.00 $1,084,690.00 $1,090,290.00 $1,093,890.00 $1,097,490.00 $1,105,490.00 $1,113,490.00 $1,118,490.00 $1,123,490.00 $1,128,490.00 $1,134,865.00 $1,140,065.00 $1,143,315.00 $1,146,615.00 $1,151,205.00 $1,153,405.00 $1,157,405.00 $1,163,555.00 $1,168,355.00 $1,173,275.00 $1,177,775.00 $1,180,775.00 $1,187,975.00 $1,195,175.00 $1,201,175.00 $1,202,675.00 $1,209,875.00 $1,217,075.00 $1,222,475.00 $1,228,775.00 $1,232,775.00 $1,238,775.00 $1,243,775.00 $1,248,775.00 $1,253,775.00 $1,260,150.00 $1,265,350.00 $1,268,050.00 $1,270,300.00 $1,273,120.00 $1,275,940.00 $1,278,340.00 $1,283,220.00 $1,284,420.00 $1,288,080.00 $1,294,480.00 $1,300,880.00 $1,302,680.00 $1,309,880.00 $1,315,580.00 $1,320,330.00 $1,329,830.00 $1,334,705.00 $1,343,480.00 $1,350,830.00 $1,352,930.00 $1,362,380.00 $1,367,080.00 $1,372,955.00 $1,380,755.00 $1,383,565.00 $1,388,065.00 $1,390,315.00 $1,392,565.00 $1,395,385.00 $1,398,675.00 $1,403,475.00 $1,405,305.00 $1,407,705.00 $1,412,585.00 $1,417,385.00 $1,419,785.00 $1,427,885.00 $1,435,085.00 $1,438,885.00 $1,444,585.00 $1,448,385.00 $1,453,260.00 $1,461,060.00 $1,469,460.00 $1,475,760.00 $1,482,060.00 $1,490,285.00 $1,496,160.00 $1,501,360.00 $1,512,560.00 $1,520,060.00 $1,524,110.00 $1,528,160.00 $1,533,330.00 $1,538,500.00 $1,542,700.00 $1,549,410.00 $1,554,210.00 $1,561,530.00 $1,567,130.00 $1,572,730.00 $1,576,330.00 $1,584,430.00 $1,593,930.00 $1,604,380.00 $1,616,730.00 $1,625,505.00 $1,637,205.00 $1,647,705.00 $1,654,005.00 $1,664,505.00 $1,675,080.00 $1,689,180.00 $1,699,580.00 $1,710,780.00 $1,719,780.00 $1,725,630.00 $1,731,930.00 $1,740,390.00 $1,749,320.00 $1,764,320.00 $1,778,350.00 $1,788,550.00 $1,798,310.00 $1,809,510.00 $1,824,710.00 $1,838,210.00 $1,850,810.00 $1,868,860.00 $1,889,760.00 $1,912,560.00 $1,934,010.00 $1,950,585.00 $1,966,335.00 $1,976,835.00 $1,990,485.00 $2,002,235.00 $2,018,685.00 $2,042,085.00 $2,067,285.00 $2,083,785.00 $2,085,585.00 $2,086,935.00 $2,087,875.00 $2,089,285.00 $2,091,685.00 $2,094,735.00 $2,098,935.00 $2,104,425.00 $2,110,825.00 $2,118,825.00 $2,124,225.00 $2,128,725.00 $2,136,325.00 $2,139,175.00 $2,146,775.00 $2,148,725.00 $2,155,550.00 $2,160,800.00 $2,166,050.00 $2,171,300.00 $2,178,350.00 $2,184,225.00 $2,189,425.00 $2,196,425.00 $2,197,925.00 $2,204,225.00 $2,211,425.00 $2,219,415.00 $2,227,875.00 $2,238,075.00 $2,249,055.00 $2,256,855.00 $2,265,395.00 $2,274,995.00 $2,289,395.00 $2,299,295.00 $2,310,995.00 $2,323,345.00 $2,336,645.00 $2,347,095.00 $2,358,795.00 $2,373,420.00 $2,389,170.00 $2,400,720.00 $2,413,320.00 $2,425,070.00 $2,435,645.00 $2,447,345.00 $2,461,345.00 $2,468,845.00 $2,472,845.00 $2,479,245.00 $2,481,870.00 $2,485,370.00 $2,492,570.00 $2,501,570.00 $2,506,970.00 $2,513,270.00 $2,518,770.00 $2,527,570.00 $2,537,470.00 $2,545,170.00 $2,557,270.00 $2,576,020.00 $2,588,520.00 $2,599,770.00 $2,616,020.00 $2,629,770.00 $2,642,370.00 $2,649,370.00 $2,659,370.00 $2,673,370.00 $2,692,870.00 $2,709,120.00 $2,724,120.00 $2,732,920.00 $2,747,320.00 $2,759,570.00 $2,773,570.00 $2,783,470.00 $2,796,070.00 $2,806,870.00 $2,818,570.00 $2,835,070.00 $2,847,170.00 $2,862,570.00 $2,876,870.00 $2,887,870.00 $2,906,620.00 $2,919,120.00 $2,936,620.00 $2,950,370.00 $2,966,620.00 $2,980,620.00 $2,997,420.00 $3,017,420.00 $3,033,420.00 $3,056,170.00 $3,078,920.00 $3,098,920.00 $3,103,720.00 $3,108,520.00 $3,115,520.00 $3,121,645.00 $3,131,545.00 $3,138,745.00 $3,143,245.00 $3,149,545.00 $3,156,145.00 $3,166,045.00 $3,173,745.00 $3,177,045.00 $3,181,445.00 $3,193,945.00 $3,202,695.00 $3,210,195.00 $3,223,945.00 $3,235,195.00 $3,253,395.00 $3,267,395.00 $3,281,395.00 $3,299,395.00 $3,322,145.00 $3,338,395.00 $3,348,395.00 $3,350,795.00 $3,359,595.00 $3,364,845.00 $3,370,095.00 $3,381,095.00 $3,394,295.00 $3,403,095.00 $3,410,795.00 $3,421,295.00 $3,431,795.00 $3,444,595.00 $3,454,195.00 $3,461,445.00 $3,467,245.00 $3,472,345.00 $3,480,845.00 $3,484,445.00 $3,491,645.00 $3,500,045.00 $3,505,645.00 $3,513,645.00 $3,523,645.00 $3,539,895.00 $3,559,395.00 $3,564,895.00 $3,568,495.00 $3,571,495.00 $3,579,195.00 $3,582,695.00 $3,589,895.00 $3,596,195.00 $3,605,345.00 $3,616,020.00 $3,620,595.00 $3,623,645.00 $3,631,270.00 $3,643,470.00 $3,654,145.00 $3,660,245.00 $3,680,045.00 $3,702,320.00 $3,717,170.00 $3,727,070.00 $3,736,970.00 $3,749,345.00 $3,766,670.00 $3,776,570.00 $3,796,570.00 $3,804,070.00 $3,811,070.00 $3,815,270.00 $3,818,870.00 $3,825,870.00 $3,830,070.00 $3,836,370.00 $3,840,870.00 $3,846,970.00 $3,857,645.00 $3,866,795.00 $3,874,420.00 $3,883,570.00 $3,891,195.00 $3,900,345.00 $3,912,545.00 $3,927,395.00 $3,947,195.00 $3,959,570.00 $3,979,370.00 $3,994,220.00 $4,014,020.00 $4,028,870.00 $4,046,195.00 $4,056,195.00 $4,068,695.00 $4,086,195.00 $4,091,595.00 $4,095,795.00 $4,105,595.00 $4,116,795.00 $4,125,795.00 $4,134,795.00 $4,146,995.00 $4,160,720.00 $4,165,295.00 $4,174,445.00 $4,185,120.00 $4,198,845.00 $4,206,470.00 $4,217,145.00 $4,244,370.00 $4,264,170.00 $4,283,970.00 $4,298,820.00 $4,318,620.00 $4,330,995.00 $4,343,370.00 $4,365,645.00 $4,383,145.00 $4,395,645.00 $4,413,145.00 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 20001 20002 20003 20004 20005 20006 20007 20008 20009 20010 20011 20012 20013 20014 20015 20016 20017 20018 20019 20020 20021 20022 20023 20024 1901 4267 5020 10051 9901 908 1145 1130 1030 1288 10063 18300 18587 19525 13222 3660 4723 1434 6782 2644 4833 4521 3640 5703 $12.80 $15.20 $10.50 $17.85 $10.95 $43.00 $43.00 $43.00 $43.00 $43.00 $5.85 $5.85 $5.85 $5.85 $5.85 $25.30 $25.30 $25.30 $25.30 $25.30 $27.30 $27.30 $27.30 $27.30 $24,332.80 $64,858.40 $52,710.00 $179,410.35 $108,415.95 $39,044.00 $49,235.00 $48,590.00 $44,290.00 $55,384.00 $58,868.55 $107,055.00 $108,733.95 $114,221.25 $77,348.70 $92,598.00 $119,491.90 $36,280.20 $171,584.60 $66,893.20 $131,940.90 $123,423.30 $99,372.00 $155,691.90 $4,437,477.80 $4,502,336.20 $4,555,046.20 $4,734,456.55 $4,842,872.50 $4,881,916.50 $4,931,151.50 $4,979,741.50 $5,024,031.50 $5,079,415.50 $5,138,284.05 $5,245,339.05 $5,354,073.00 $5,468,294.25 $5,545,642.95 $5,638,240.95 $5,757,732.85 $5,794,013.05 $5,965,597.65 $6,032,490.85 $6,164,431.75 $6,287,855.05 $6,387,227.05 $6,542,918.95 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 10005 10006 10007 10008 11201 11202 11203 11204 11205 11206 11207 11208 11209 11210 11211 11212 11213 11214 11215 11216 11217 11218 11219 11220 11221 11222 11223 11224 11225 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 5 5 $350.00 $350.00 $300.00 $310.00 $350.00 $350.00 $370.00 $370.00 $450.00 $460.00 $450.00 $460.00 $600.00 $600.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $825.00 $825.00 $825.00 $875.00 $875.00 $900.00 $1,000.00 $1,100.00 $3,500.00 $3,500.00 $3,000.00 $3,100.00 $3,500.00 $3,500.00 $3,700.00 $3,700.00 $4,500.00 $4,600.00 $4,500.00 $4,600.00 $6,000.00 $6,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $7,000.00 $8,250.00 $8,250.00 $8,250.00 $8,750.00 $8,750.00 $9,000.00 $5,000.00 $5,500.00 $6,546,418.95 $6,549,918.95 $6,552,918.95 $6,556,018.95 $6,559,518.95 $6,563,018.95 $6,566,718.95 $6,570,418.95 $6,574,918.95 $6,579,518.95 $6,584,018.95 $6,588,618.95 $6,594,618.95 $6,600,618.95 $6,607,618.95 $6,614,618.95 $6,621,618.95 $6,628,618.95 $6,635,618.95 $6,642,618.95 $6,649,618.95 $6,657,868.95 $6,666,118.95 $6,674,368.95 $6,683,118.95 $6,691,868.95 $6,700,868.95 $6,705,868.95 $6,711,368.95 Raw Materials Work In Progress Small Tools Inventory 554 $42,395.05 $6,753,764.00 (Mt. Hood FurniturePPS sampling problem) You have been assigned the task of testing the accuracy of the final inventory compilation for Mt. Hood Furniture. You may assume that you have separately observed the inventory and that you are satisfied that the inventory was accurately counted. However, you need to test that quantities were accurately transcribed to the final accumulation and valuation of inventory and that the inventory is correctly priced and accumulated. The table beginning on page 617 presents the audited values associated with Mt. Hood's pricing and accumulation of all items in inventory. The book values will be given to you by your professor. You may assume that you have performed the tests to determine the proper pricing for raw materials, work in process, and finished goods. The student should understand that the auditor will normally obtain this information only for the items included in the sample. Required 1. Identify the audit objectives that are accomplished by this test. To obtain evidence that the quantities were accurately transcribed to the final accumulation and valuation of inventory and that the inventory is correctly priced and accumulated. An audit sampling will be used to estimate the dollar amount of misstatement in the inventory population. The objective of the audit sampling is to perform substantive tests, since determination is required of whether the quantities is needed of whether the quantities were accurately transcribed to the final accumulation. 2. Determine sample size based on the following audit judgments. a. Tolerable misstatement is assessed at $325,000. b. The risk of incorrect acceptance is assessed at 37 percent. c. Anticipated misstatement is assessed at $100,000. Book value of population = $6753764 TM = 325,000 AM = 100,000 EF = 1.15 Sample size = 32 (n) Sample interval = 6753764 / 32 = 211,055 Projected misstatement Random Sampling = 325933.98 = 154905 Total of random sampling intervals = 480467.40 Random Sampling Tainting % Began 154,905 Projected Misstatement 20004 20013 $179,410.35 $108,733.50 27% 17% $57,936.70 $36,077.80 20012 20011 11023 10104 $107,055.00 $58,868.55 $23,400.00 $3,000.00 $480,467.40 17% 17% 56% 20% ?? $36,077.80 $36,077.80 $117,552.85 $42,211.03 $325,933.98 3. Develop a scenario that is consistent with setting the risk of incorrect acceptance at 37 percent 5. Explain the tests that you would perform to test the correctness of pricing of raw materials, work in progress, and finished goods. (The student may wish to consult Chapter 16.) Pricing of Raw Materials, Work In Progress, and Finished Goods: As we audit the production cycle which includes the correctness of pricing of raw materials, work in progress, and finished goods. We must also understand how the production cycle over laps with the expenditure cycle, personnel services cycle, and revenue cycle to properly identify deviations or misstatements. From these other cycles we can gather data by use of the analytical procedure to help verify information. The analytical procedure is one way to verify the accuracy of raw data. This process contains the use of various ratios and formulas to calculate the inventory turn days, inventory growth to cost of sales growth, finished goods produced to raw material used, finished goods produced to direct labor, product defects per million, and profit margins. If these ratios increase or decrease beyond a tolerable percentage without any cause can alert the audit team that there is an error. Stock Audited Number Quantity Audited Audited Stock Audited Audited Audited Price Amount Number Quantity Price Amount Finished Goods 1000 13 $ 250.00 $ 3,250.00 10201 11 $ 250.00 $ 2,750.00 10002 12 $ 275.00 $ 3,300.00 10202 11 $ 275.00 $3,025.00 1000 15 $ 270.00 $ 4,050.00 10203 16 $ 270.00 $ 4,320.0 11 $ 200.00 $ 2,200.00 10204 11 $ 200.00 $ 2,200.00 10005 10 $ 400.00 $ 4,000.00 10205 9 $ 400.00 $ 3,600.00 1000 $ 410.00 $ 4,100.00 10206 12 $ 410.00 $ 4,920.00 1 3 1000 4 10 6 1000 8 $ 400.00 $ 3,200.00 10207 10 $ 400.00 $ 4,000.00 9 $ 410.00 $ 3,690.00 10208 9 $ 410.00 $ 3,690.00 10009 20 $ 750.00 $ 15,000.00 10209 16 $ 750.00 $ 12,000.00 1001 9 $ 750.00 $ 6,750.00 10210 13 $ 750.00 $ 9,750.00 12 $ 800.00 $ 9,600.00 10211 14 $ 800.00 $ 11,200.00 10012 14 $ 800.00 $ 11,200.00 10212 8 $ 800.00 $ 6,400.00 7 1000 8 0 1001 1 10013 8 $ 750.00 $ 6,000.00 10213 2 $ 745.00 $ 1,490.00 10014 11 $ 750.00 $ 8,250.00 10214 4 $ 750.00 $ 3,000.00 10015 6 $ 800.00 $ 4,800.00 10215 5 $ 800.00 $ 4,000.00 10016 10 $ 800.00 $ 8,000.00 10216 7 $ 800.00 $ 5,600.00 10017 3 $ 900.00 $ 2,700.00 10217 8 $ 900.00 $ 7,200.00 10018 11 $ 900.00 $ 9,900.00 10218 9 $ 900.00 $ 8,100.00 10019 5 $ 1,000.00 $ 5,000.00 10219 11 $ 1,000.00 $ 11,000.00 10020 8 $ 1,000.00 $ 8,000.00 10220 5 $ 1,000.00 $ 5,000.00 10021 4 $ 1,250.00 $ 5,000.00 10221 4 $ 1,250.00 $ 5,000.00 10022 4 $ 1,250.00 $ 5,000.00 10222 6 $ 1,250.00 $ 7,500.00 10023 2 $ 1,250.00 $ 2,500.00 10223 7 $ 1,250.00 $ 8,750.00 10024 5 $ 1,275.00 $ 6,375.00 10224 5 $ 1,275.00 $ 6,375.00 10025 2 $ 1,300.00 $ 2,600.00 10225 4 $ 1,300.00 $ 5,200.00 1010 8 $ 250.00 $ 2,000.00 10301 15 $ 250.00 $ 3,750.00 10102 8 $ 275.00 $ 2,200.00 10302 16 $ 275.00 $4,400.00 1010 12 $ 270.00 $ 3,240.00 10303 18 $ 270.00 $ 4,860.00 15 $ 200.00 $ 3,000.00 10304 11 $ 200.00 $ 2,200.00 10105 12 $ 400.00 $ 4,800.00 10305 13 $ 400.00 $ 5,200.00 1010 12 $ 410.00 $ 4,920.00 10306 13 $ 410.00 $ 5,330.00 11 $ 400.00 $ 4,400.00 10307 17 $ 400.00 $ 6,800.00 9 $ 410.00 $ 3,690.00 10308 14 $ 410.00 $ 5,740.00 10109 10 $ 750.00 $ 7,500.00 10309 22 $ 750.00 $ 16,500.00 1011 8 $ 750.00 $ 6,000.00 10310 16 $ 750.00 $ 12,000.00 8 $ 800.00 $ 6,400.00 10311 12 $ 800.00 $ 9,600.00 1 3 1010 4 6 1010 7 1010 8 0 1011 1 10112 8 $ 800.00 $ 6,400.00 10312 14 $ 800.00 $ 11,200.00 1011 6 $ 750.00 $ 4,500.00 10313 18 $ 750.00 $ 13,500.00 12 $ 750.00 $ 9,000.00 10314 17 $ 750.00 $ 12,750.00 10115 8 $ 800.00 $ 6,400.00 10315 12 $ 800.00 $ 9,600.00 1011 9 $ 800.00 $ 7,200.00 10316 14 $ 800.00 $ 11,200.00 5 $ 900.00 $ 4,500.00 10317 14 $ 900.00 $ 12,600.00 7 $ 900.00 $ 6,300.00 10318 17 $ 900.00 $ 15,300.00 10119 4 $ 1,000.00 $ 4,000.00 10319 10 $ 1,000.00 $ 10,000.00 10120 4 $ 1,000.00 $ 4,000.00 10320 12 $ 1,000.00 $ 12,000.00 10121 7 $ 1,250.00 $ 8,750.00 10321 19 $ 1,250.00 $ 23,750.00 10122 6 $ 1,250.00 $ 7,500.00 10322 15 $ 1,250.00 $ 18,750.00 10123 4 $ 1,250.00 $ 5,000.00 10323 13 $ 1,250.00 $ 16,250.00 10124 7 $ 1,275.00 $ 8,925.00 10324 12 $ 1,275.00 $ 15,300.00 10125 5 $ 1,300.00 $ 6,500.00 10325 15 $ 1,300.00 $ 19,500.00 1040 15 $250.00 $3,750.00 10601 13 $250.00 $3,250.00 10402 14 $275.00 $3,850.00 10602 12 $275.00 $3,300.00 1040 $270.00 $3,510.00 10603 17 $270.00 $4,590.00 3 1011 4 6 1011 7 1011 8 1 3 13 1040 9 $200.00 $1,800.00 10604 11 $200.00 $2,200.00 10405 12 $400.00 $4,800.00 10605 10 $400.00 $4,000.00 1040 9 $410.00 $3,690.00 10606 15 $410.00 $6,150.00 15 $400.00 $6,000.00 10607 12 $400.00 $4,800.00 12 $410.00 $4,920.00 10608 12 $410.00 $4,920.00 10409 17 $750.00 $12,750.00 10609 6 $750.00 $4,500.00 1041 12 $750.00 $9,000.00 10610 4 $750.00 $3,000.00 12 $800.00 $9,600.00 10611 9 $800.00 $7,200.00 10412 12 $800.00 $9,600.00 10612 9 $800.00 $7,200.00 1041 17 $750.00 $12,750.00 10613 8 $750.00 $6,000.00 15 $750.00 $11,250.00 10614 2 $750.00 $1,500.00 10415 11 $800.00 $8,800.00 10615 9 $800.00 $7,200.00 1041 13 $800.00 $10,400.00 10616 9 $800.00 $7,200.00 12 $900.00 $10,800.00 10617 6 $900.00 $5,400.00 4 6 1040 7 1040 8 0 1041 1 3 1041 4 6 1041 7 1041 15 $900.00 $13,500.00 10618 7 $900.00 $6,300.00 10419 9 $1,000.00 $9,000.00 10619 4 $1,000.00 $4,000.00 10420 11 $1,000.00 $11,000.00 10620 6 $1,000.00 $6,000.00 10421 16 $1,250.00 $20,000.00 10621 4 $1,250.00 $5,000.00 10422 15 $1,250.00 $18,750.00 10622 4 $1,250.00 $5,000.00 10423 12 $1,250.00 $15,000.00 10623 4 $1,250.00 $5,000.00 10424 10 $1,275.00 $12,750.00 10624 5 $1,275.00 $6,375.00 10425 12 $1,300.00 $15,600.00 10625 4 $1,300.00 $5,200.00 10501 8 $250.00 $2,000.00 10701 6 $400.00 $2,400.00 10502 6 $275.00 $1,650.00 10702 5 $450.00 $2,250.00 10503 9 $270.00 $2,430.00 10703 6 $470.00 $2,820.00 10504 11 $200.00 $2,200.00 10704 6 $470.00 $2,820.00 10505 12 $400.00 $4,800.00 10705 4 $600.00 $2,400.00 10506 11 $410.00 $4,510.00 10706 8 $610.00 $4,880.00 10507 7 $400.00 $2,800.00 10707 2 $600.00 $1,200.00 10508 9 $410.00 $3,690.00 10708 6 $610.00 $3,660.00 10509 14 $750.00 $10,500.00 10709 8 $800.00 $6,400.00 10510 16 $750.00 $12,000.00 10710 8 $800.00 $6,400.00 10511 14 $800.00 $11,200.00 10711 2 $900.00 $1,800.00 10512 12 $800.00 $9,600.00 10712 8 $900.00 $7,200.00 10513 18 $750.00 $13,500.00 10713 6 $950.00 $5,700.00 10514 19 $750.00 $14,250.00 10714 5 $950.00 $4,750.00 10515 7 $800.00 $5,600.00 10715 10 $950.00 $9,500.00 8 10516 7 $800.00 $5,600.00 10716 5 $975.00 $4,875.00 10517 4 $900.00 $3,600.00 10717 9 $975.00 $8,775.00 10518 4 $900.00 $3,600.00 10718 7 $1,050.00 $7,350.00 10519 8 $1,000.00 $8,000.00 10719 2 $1,050.00 $2,100.00 10520 8 $1,000.00 $8,000.00 10720 9 $1,050.00 $9,450.00 10521 4 $1,250.00 $5,000.00 10721 4 $1,175.00 $4,700.00 10522 4 $1,250.00 $5,000.00 10722 5 $1,175.00 $5,875.00 10523 4 $1,250.00 $5,000.00 10723 6 $1,300.00 $7,800.00 10524 5 $1,275.00 $6,375.00 10724 2 $1,405.00 $2,810.00 10525 4 $1,300.00 $5,200.00 10725 3 $1,500.00 $4,500.00 1080 5 $400.00 $2,000.00 11001 13 $400.00 $5,200.00 10802 5 $450.00 $2,250.00 11002 14 $450.00 $6,300.00 1080 6 $470.00 $2,820.00 11003 18 $470.00 $8,460.00 7 $470.00 $3,290.00 11004 19 $470.00 $8,930.00 10805 8 $600.00 $4,800.00 11005 25 $600.00 $15,000.00 1080 3 $610.00 $1,830.00 11006 23 $610.00 $14,030.00 4 $600.00 $2,400.00 11007 17 $600.00 $10,200.00 8 $610.00 $4,880.00 11008 16 $610.00 $9,760.00 1 3 1080 4 6 1080 7 1080 8 10809 6 $800.00 $4,800.00 11009 14 $800.00 $11,200.00 1081 3 $800.00 $2,400.00 11010 19 $800.00 $15,200.00 9 $900.00 $8,100.00 11011 15 $900.00 $13,500.00 10812 8 $900.00 $7,200.00 11012 14 $900.00 $12,600.00 1081 4 $950.00 $3,800.00 11013 19 $950.00 $18,050.00 6 $950.00 $5,700.00 11014 22 $950.00 $20,900.00 10815 4 $950.00 $3,800.00 11015 24 $950.00 $22,800.00 1081 5 $975.00 $4,875.00 11016 22 $975.00 $21,450.00 8 $975.00 $7,800.00 11017 17 $975.00 $16,575.00 8 $1,050.00 $8,400.00 11018 15 $1,050.00 $15,750.00 10819 6 $1,050.00 $6,300.00 11019 10 $1,050.00 $10,500.00 10820 6 $1,050.00 $6,300.00 11020 13 $1,050.00 $13,650.00 10821 7 $1,175.00 $8,225.00 11021 10 $1,175.00 $11,750.00 10822 5 $1,175.00 $5,875.00 11022 14 $1,175.00 $16,450.00 10823 4 $1,300.00 $5,200.00 11023 18 $1,300.00 $23,400.00 10824 8 $1,400.00 $11,200.00 11024 18 $1,400.00 $25,200.00 0 1081 1 3 1081 4 6 1081 7 1081 8 10825 5 $1,500.00 $7,500.00 11025 11 $1,500.00 $16,500.00 10901 9 $400.00 $3,600.00 11201 4 $400.00 $1,600.00 10902 9 $450.00 $4,050.00 11202 3 $450.00 $1,350.00 10903 11 $470.00 $5,170.00 11203 2 $470.00 $940.00 10904 11 $470.00 $5,170.00 11204 3 $470.00 $1,410.00 10905 7 $600.00 $4,200.00 11205 4 $600.00 $2,400.00 10906 11 $610.00 $6,710.00 11206 5 $610.00 $3,050.00 10907 8 $600.00 $4,800.00 11207 7 $600.00 $4,200.00 10908 12 $610.00 $7,320.00 11208 9 $610.00 $5,490.00 10909 7 $800.00 $5,600.00 11209 8 $800.00 $6,400.00 10910 7 $800.00 $5,600.00 11210 10 $800.00 $8,000.00 10911 4 $900.00 $3,600.00 11211 6 $900.00 $5,400.00 10912 9 $900.00 $8,100.00 11212 5 $900.00 $4,500.00 10913 10 $950.00 $9,500.00 11213 8 $950.00 $7,600.00 10914 11 $950.00 $10,450.00 11214 3 $950.00 $2,850.00 10915 13 $950.00 $12,350.00 11215 8 $950.00 $7,600.00 10916 9 $975.00 $8,775.00 11216 2 $975.00 $1,950.00 10917 12 $975.00 $11,700.00 11217 7 $975.00 $6,825.00 10918 10 $1,050.00 $10,500.00 11218 5 $1,050.00 $5,250.00 10919 6 $1,050.00 $6,300.00 11219 5 $1,050.00 $5,250.00 10920 10 $1,050.00 $10,500.00 11220 5 $1,050.00 $5,250.00 10921 9 $1,175.00 $10,575.00 11221 6 $1,175.00 $7,050.00 10922 12 $1,175.00 $14,100.00 11222 5 $1,175.00 $5,875.00 10923 8 $1,300.00 $10,400.00 11223 4 $1,300.00 $5,200.00 10924 8 $1,400.00 $11,200.00 11224 5 $1,400.00 $7,000.00 10925 6 $1,500.00 $9,000.00 11225 1 $1,500.00 $1,500.00 1130 14 $400.00 $5,600.00 11501 11 $800.00 $8,800.00 11302 16 $450.00 $7,200.00 11502 18 $800.00 $14,400.00 1130 17 $470.00 $7,990.00 11503 12 $875.00 $10,500.00 18 $470.00 $8,460.00 11504 14 $875.00 $12,250.00 11305 17 $600.00 $10,200.00 11505 11 $900.00 $9,900.00 1130 18 $610.00 $10,980.00 11506 14 $900.00 $12,600.00 13 $600.00 $7,800.00 11507 12 $900.00 $10,800.00 14 $610.00 $8,540.00 11508 13 $900.00 $11,700.00 11309 12 $800.00 $9,600.00 11509 15 $1,100.00 $16,500.00 1131 18 $800.00 $14,400.00 11510 11 $1,100.00 $12,100.00 11 $900.00 $9,900.00 11511 14 $1,100.00 $15,400.00 11312 13 $900.00 $11,700.00 11512 13 $1,100.00 $14,300.00 1131 $950.00 $12,350.00 11513 10 $1,100.00 $11,000.00 1 3 1130 4 6 1130 7 1130 8 0 1131 1 3 13 1131 14 $950.00 $13,300.00 11514 15 $1,250.00 $18,750.00 11315 11 $950.00 $10,450.00 11515 10 $1,250.00 $12,500.00 1131 12 $975.00 $11,700.00 11516 14 $1,250.00 $17,500.00 15 $975.00 $14,625.00 11517 11 $1,250.00 $13,750.00 15 $1,050.00 $15,750.00 11518 13 $1,250.00 $16,250.00 11319 11 $1,050.00 $11,550.00 11519 10 $1,400.00 $14,000.00 11320 12 $1,050.00 $12,600.00 11520 12 $1,400.00 $16,800.00 11321 10 $1,175.00 $11,750.00 11521 10 $2,000.00 $20,000.00 11322 9 $1,175.00 $10,575.00 11522 8 $2,000.00 $16,000.00 11323 9 $1,300.00 $11,700.00 11523 7 $3,250.00 $22,750.00 11324 10 $1,400.00 $14,000.00 11524 7 $3,250.00 $22,750.00 11325 5 $1,500.00 $7,500.00 11525 8 $2,500.00 $20,000.00 1140 5 $800.00 $4,000.00 11601 6 $800.00 $4,800.00 11402 8 $800.00 $6,400.00 11602 6 $800.00 $4,800.00 1140 3 $875.00 $2,625.00 11603 8 $875.00 $7,000.00 4 $875.00 $3,500.00 11604 7 $875.00 $6,125.00 11405 8 $900.00 $7,200.00 11605 11 $900.00 $9,900.00 4 6 1131 7 1131 8 1 3 1140 4 1140 10 $900.00 $9,000.00 11606 8 $900.00 $7,200.00 6 $900.00 $5,400.00 11607 5 $900.00 $4,500.00 7 $900.00 $6,300.00 11608 7 $900.00 $6,300.00 11409 5 $1,100.00 $5,500.00 11609 6 $1,100.00 $6,600.00 1141 8 $1,100.00 $8,800.00 11610 9 $1,100.00 $9,900.00 9 $1,100.00 $9,900.00 11611 7 $1,100.00 $7,700.00 11412 7 $1,100.00 $7,700.00 11612 3 $1,100.00 $3,300.00 1141 11 $1,100.00 $12,100.00 11613 4 $1,100.00 $4,400.00 15 $1,250.00 $18,750.00 11614 10 $1,250.00 $12,500.00 11415 10 $1,250.00 $12,500.00 11615 7 $1,250.00 $8,750.00 1141 9 $1,250.00 $11,250.00 11616 6 $1,250.00 $7,500.00 13 $1,250.00 $16,250.00 11617 11 $1,250.00 $13,750.00 11 $1,250.00 $13,750.00 11618 9 $1,250.00 $11,250.00 $1,400.00 $12,600.00 11619 13 $1,400.00 $18,200.00 6 1140 7 1140 8 0 1141 1 3 1141 4 6 1141 7 1141 8 11419 9 11420 5 $1,400.00 $7,000.00 11620 10 $1,400.00 $14,000.00 11421 5 $2,000.00 $10,000.00 11621 7 $2,000.00 $14,000.00 11422 7 $2,000.00 $14,000.00 11622 9 $2,000.00 $18,000.00 11423 6 $3,250.00 $19,500.00 11623 7 $3,250.00 $22,750.00 11424 5 $3,250.00 $16,250.00 11624 5 $3,250.00 $16,250.00 11425 6 $2,500.00 $15,000.00 11625 4 $2,500.00 $10,000.00 1170 3 $800.00 $2,400.00 11901 7 $600.00 $4,200.00 11702 9 $800.00 $7,200.00 11902 6 $600.00 $3,600.00 1170 6 $875.00 $5,250.00 11903 10 $700.00 $7,000.00 6 $875.00 $5,250.00 11904 6 $700.00 $4,200.00 11705 10 $1,100.00 $11,000.00 11905 7 $900.00 $6,300.00 1170 12 $1,100.00 $13,200.00 11906 5 $900.00 $4,500.00 8 $1,100.00 $8,800.00 11907 4 $1,525.00 $6,100.00 7 $1,100.00 $7,700.00 11908 7 $1,525.00 $10,675.00 11709 7 $1,500.00 $10,500.00 11909 6 $1,525.00 $9,150.00 1171 7 $1,500.00 $10,500.00 11910 5 $1,525.00 $7,625.00 8 $1,600.00 $12,800.00 11911 6 $1,525.00 $9,150.00 1 3 1170 4 6 1170 7 1170 8 0 1171 1 11712 6 $1,600.00 $9,600.00 11912 5 $1,525.00 $7,625.00 1171 5 $1,450.00 $7,250.00 11913 6 $1,525.00 $9,150.00 4 $1,450.00 $5,800.00 11914 8 $1,525.00 $12,200.00 11715 3 $1,700.00 $5,100.00 11915 6 $2,475.00 $14,850.00 1171 5 $1,700.00 $8,500.00 11916 8 $2,475.00 $19,800.00 2 $1,800.00 $3,600.00 11917 5 $2,475.00 $12,375.00 4 $1,800.00 $7,200.00 11918 8 $2,475.00 $19,800.00 11719 6 $1,400.00 $8,400.00 11919 6 $2,475.00 $14,850.00 11720 4 $1,400.00 $5,600.00 11920 8 $2,475.00 $19,800.00 11721 4 $2,000.00 $8,000.00 11921 6 $2,475.00 $14,850.00 11722 5 $2,000.00 $10,000.00 11922 7 $2,475.00 $17,325.00 11723 5 $3,250.00 $16,250.00 11923 4 $2,500.00 $10,000.00 11724 6 $3,250.00 $19,500.00 11924 5 $2,500.00 $12,500.00 11725 1 $5,500.00 $5,500.00 11925 5 $3,500.00 $17,500.00 1180 6 $600.00 $3,600.00 12001 9 $600.00 $5,400.00 11802 5 $600.00 $3,000.00 12002 7 $600.00 $4,200.00 1180 $700.00 $7,700.00 12003 14 $700.00 $9,800.00 3 1171 4 6 1171 7 1171 8 1 11 3 1180 5 $700.00 $3,500.00 12004 16 $700.00 $11,200.00 11805 8 $900.00 $7,200.00 12005 10 $900.00 $9,000.00 1180 7 $900.00 $6,300.00 12006 10 $900.00 $9,000.00 6 $1,525.00 $9,150.00 12007 8 $1,525.00 $12,200.00 7 $1,525.00 $10,675.00 12008 9 $1,525.00 $13,725.00 11809 3 $1,525.00 $4,575.00 12009 3 $1,525.00 $4,575.00 1181 2 $1,525.00 $3,050.00 12010 6 $1,525.00 $9,150.00 5 $1,525.00 $7,625.00 12011 7 $1,525.00 $10,675.00 11812 8 $1,525.00 $12,200.00 12012 9 $1,525.00 $13,725.00 1181 7 $1,525.00 $10,675.00 12013 5 $1,525.00 $7,625.00 4 $1,525.00 $6,100.00 12014 7 $1,525.00 $10,675.00 11815 8 $2,475.00 $19,800.00 12015 11 $2,475.00 $27,225.00 1181 9 $2,475.00 $22,275.00 12016 8 $2,475.00 $19,800.00 6 $2,475.00 $14,850.00 12017 8 $2,475.00 $19,800.00 4 6 1180 7 1180 8 0 1181 1 3 1181 4 6 1181 7 1181 4 $2,475.00 $9,900.00 12018 6 $2,475.00 $14,850.00 11819 4 $2,475.00 $9,900.00 12019 8 $2,475.00 $19,800.00 11820 5 $2,475.00 $12,375.00 12020 5 $2,475.00 $12,375.00 11821 7 $2,475.00 $17,325.00 12021 5 $2,475.00 $12,375.00 11822 4 $2,475.00 $9,900.00 12022 9 $2,475.00 $22,275.00 11823 8 $2,500.00 $20,000.00 12023 7 $2,500.00 $17,500.00 11824 3 $2,500.00 $7,500.00 12024 5 $2,500.00 $12,500.00 11825 2 $3,500.00 $7,000.00 12025 5 $3,500.00 $17,500.00 8 Raw Materials Work in Progress 20001 2056 $12.80 $26,316.80 10005 10 $350.00 $3,500.00 20002 5090 $15.20 $77,368.00 10006 10 $350.00 $3,500.00 20003 6344 $10.50 $66,612.00 10007 10 $300.00 $3,000.00 20004 10052 $12.95 $130,173.40 10008 10 $310.00 $3,100.00 20005 9900 $10.95 $108,405.00 11201 10 $350.00 $3,500.00 20006 1233 $43.00 $53,019.00 11202 10 $350.00 $3,500.00 20007 1145 $43.00 $49,235.00 11203 10 $370.00 $3,700.00 20008 1130 $43.00 $48,590.00 11204 10 $370.00 $3,700.00 20009 1030 $43.00 $44,290.00 11205 10 $450.00 $4,500.00 20010 1288 $43.00 $55,384.00 11206 10 $460.00 $4,600.00 20011 10066 $5.85 $58,886.10 11207 10 $450.00 $4,500.00 20012 18300 $5.85 $107,055.00 11208 10 $460.00 $4,600.00 20013 18587 $5.85 $108,733.95 11209 10 $600.00 $6,000.00 20014 19525 $5.85 $114,221.25 11210 10 $600.00 $6,000.00 20015 13222 $5.85 $77,348.70 11211 10 $700.00 $7,000.00 20016 3606 $25.30 $91,231.80 11212 10 $700.00 $7,000.00 20017 4723 $25.30 $119,491.90 11213 10 $700.00 $7,000.00 20018 1434 $25.30 $36,280.20 11214 10 $700.00 $7,000.00 20019 6782 $25.30 $171,584.60 11215 10 $700.00 $7,000.00 20020 2644 $25.30 $66,893.20 11216 10 $700.00 $7,000.00 20021 4833 $27.30 $131,940.90 11217 10 $700.00 $7,000.00 20022 4521 $27.30 $123,423.30 11218 10 $825.00 $8,250.00 20023 3640 $27.30 $99,372.00 11219 10 $825.00 $8,250.00 20024 5703 $27.30 $155,691.90 11220 10 $825.00 $8,250.00 - - - - 11221 10 $875.00 $8,750.00 11222 10 $875.00 $8,750.00 Small Tools $37,989.00 Inventory - - - - 11223 10 $900.00 $9,000.00 - - - - 11224 5 $1,000.00 $5,000.00 - - - - 11225 5 $1,100.00 $5,500.00 Professor's given book value A couple of hints: The inventory is materially misstated. Use a random start that includes line #11 (that way you will get the same result). Do not round down for the sample size. Make sure you attach all of your calculations for case 13-36 (Mt. Hood FurniturePPS sampling problem) You have been assigned the task of testing the accuracy of the final inventory compilation for Mt. Hood Furniture. You may assume that you have separately observed the inventory and that you are satisfied that the inventory was accurately counted. However, you need to test that quantities were accurately transcribed to the final accumulation and valuation of inventory and that the inventory is correctly priced and accumulated. The table beginning on page 617 presents the audited values associated with Mt. Hood's pricing and accumulation of all items in inventory. The book values will be given to you by your professor. You may assume that you have performed the tests to determine the proper pricing for raw materials, work in process, and finished goods. The student should understand that the auditor will normally obtain this information only for the items included in the sample. Required 1. Identify the audit objectives that are accomplished by this test. To obtain evidence that the quantities were accurately transcribed to the final accumulation and valuation of inventory and that the inventory is correctly priced and accumulated. An audit sampling will be used to estimate the dollar amount of misstatement in the inventory population. The objective of the audit sampling is to perform substantive tests, since determination is required of whether the quantities is needed of whether the quantities were accurately transcribed to the final accumulation. 2. Determine sample size based on the following audit judgments. a. Tolerable misstatement is assessed at $325,000. b. The risk of incorrect acceptance is assessed at 37 percent. c. Anticipated misstatement is assessed at