Part A Below are the initial 20 items from the population of inventory items for Saturn...
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Part A Below are the initial 20 items from the population of inventory items for Saturn Ltd: Population item Amount Population item 11 12 Amount (S) 425 ($) 1,890 6,250 825 22,110 16,225 1,000 1 2 3 11,895 3,270 1,150 975 910 2,465 4,220 735 1,760 13 14 4 15 16 6. 7 770 17 5,725 9,130 7,755 8 9 10 18 19 20 The total of the inventory account is $2,000,000, consisting of 500 items. A sample of 100 items is to be selected with a random start of 4. The tolerable error is set at $100,000. Required: (a) Using traditional systematic sampling, which inventory items will be the first 3 included in the sample? Show all calculations. (2 marks) (b) Using Dollar Unit Sampling (DUS) with selection by a systematic sampling technique, which inventory items will be the first 3 included in the sample? Show all calculations. (3 marks) (c) If the total amount for the samples is $1,700,000 and the misstatement found in the samples is $80,000, explain whether the inventory balance is materially misstated. Show all calculations. (2 marks) (d) What possible courses of action can you take for your results in part (c)? (2 marks) Part A Below are the initial 20 items from the population of inventory items for Saturn Ltd: Population item Amount Population item 11 12 Amount (S) 425 ($) 1,890 6,250 825 22,110 16,225 1,000 1 2 3 11,895 3,270 1,150 975 910 2,465 4,220 735 1,760 13 14 4 15 16 6. 7 770 17 5,725 9,130 7,755 8 9 10 18 19 20 The total of the inventory account is $2,000,000, consisting of 500 items. A sample of 100 items is to be selected with a random start of 4. The tolerable error is set at $100,000. Required: (a) Using traditional systematic sampling, which inventory items will be the first 3 included in the sample? Show all calculations. (2 marks) (b) Using Dollar Unit Sampling (DUS) with selection by a systematic sampling technique, which inventory items will be the first 3 included in the sample? Show all calculations. (3 marks) (c) If the total amount for the samples is $1,700,000 and the misstatement found in the samples is $80,000, explain whether the inventory balance is materially misstated. Show all calculations. (2 marks) (d) What possible courses of action can you take for your results in part (c)? (2 marks)
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