Population

$$ Size $=10,000$ items

$$ Book value $=$ $$8,000,000$

$$ Tolerable misstatement $=$ $$300,000$

Sample $($mean$-$per$-$unit estimation method results$)$

$$ Size $=100$ items.

$$ Average book value of sample items $=$ $$795$

$$ Allowance for sampling risk $=$ $$200,000$

$$ Projected misstatement $=$ $$100,000$ overstatement

The average audited value in the sample is equal to:

Multiple Choice

$$ $$785.$

$$ $$790.$

$$ $$1,000.$

$$ $$1,200.$