The 4,000 accounts receivable of Miller Company have a total book value of $150,000.A CPA has selected and audited a sample of 100 accounts with a total book value of $3,700 and an audited value of $3,800.
-Using the mean-per-unit estimation technique,the estimated total audited value of the population is:
A)$150,000.
B)$152,000.
C)$154,000.
D)$154,054.

Question

Quizplus · Accepted Answer

The mean-per-unit estimation technique involves calculating the average audited value of the sample and then applying this average to the entire population. In this case, the average audited value per account in the sample is $3,800 / 100 = $38. Applying this average to the entire population of 4,000 accounts gives an estimated total audited value of 4,000 * $38 = $152,000.

The 4,000 Accounts Receivable of Miller Company Have a Total