Evaluate Each Inventory Error Separately and Determine Whether It Overstates

Essay

Evaluate each inventory error separately and determine whether it overstates or understates cost of goods sold and net income.
$\begin{array}{|l|l|l|}\hline \text { Inventory Error } & \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understatement of beginning inventory } & & \\\hline \text { Understatement of ending inventory } & & \\\hline \text { Overstatement of beginning inventory } & & \\\hline \text { Overstatement of ending inventory } & & \\\hline\end{array}$