McMullen and Mulligan, CPAs, were conducting the audit of Cusick Machine Tool Company for the year ended December $31.$ Jim Sigmund, senior$-$in$-$charge of the audit, plans to use MUS to audit Cusick$$s inventory account. The balance at December $31$ was $$9,000,000.$

Required:

Based on the following information, compute the required MUS sample size and sampling interval using Table $85$:

Note: Use the tables, not IDEA, to solve for these problems. Round your interval answer to the nearest whole number.

Tolerable misstatement $=$ $$360,000$

Expected misstatement $=$ $$90,000$

Risk of incorrect acceptance $=5\%$

Sample size$=?$ sampling interval $=?$

Nancy Van Pelt, staff accountant, used the sample items selected in part a and performed the audit procedures listed in the inventory audit program. She notes the following misstatements:

Note: Use the tables, not IDEA, to solve for these problems. Round tainting factor to two decimal places. Do not round other intermediate calculations. Round your final answer to the nearest dollar amount.

Misstatement NumberBook ValueAudit Value$1$$ $10,000$$ $7,50029,0006,000360,00004800640$

Using this information and Table $93,$ calculate the upper misstatement limit$.$ What conclusion should Van Pelt make concerning the inventory?

UML $=?$

Assume that, in addition to the four misstatements identified in part b$,$ Van Pelt had identified the following two understatements:

Note: Use the tables, not IDEA, to solve for these problems. Negative amounts should be indicated with minus sign. Round your intermediate calculations to $3$ decimal places. Round the final answer to nearest dollar amount.

Misstatement NumberBook ValueAudit Value$5$$ $6,000$$ $6,5006750800$

Calculate the net projected population misstatement.

Net projected misstatement?