Green CPA Audited the Inventory of ABC Company on a Sample

question 25

Multiple Choice

Green CPA audited the inventory of ABC Company on a sample basis. Green audited a sample of 120 items and found a net overstatement of $600. The audited sample had a recorded value of $12,000. The entire inventory contained 2,400 items with a total book value of $280,000. The projected likely overstatement using the dollar unit sampling method is ________.

• A) $12,000
• B) $14,000
• C) $48,000
• D) $56,000