Alice Rathermel Audited LoHo Company's Inventory Using Sampling

Alice Rathermel audited LoHo Company's inventory using sampling.She examined 120 items from an inventory compilation list and discovered net overstatement of $480.The audited items had a book (recorded) value of $48,000.There were 1,200 inventory items listed,and the total recorded inventory amount was $490,000.What is the projected misstatement using mean-per-unit estimation?

A) $480.
B) $576,000.
C) $10,000.
D) $480,000.

Correct Answer:

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