An Error in the Physical Count of Goods on Hand $\quad$

Multiple Choice

An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory. The effect of this error in the current period is
Cost of Goods Sold $\quad$ Profit

A) Understated $\quad$$\quad$ Understated
B) Overstated $\quad$$\quad$ Overstated
C) Understated $\quad$$\quad$ Overstated
D) Overstated $\quad$$\quad$ Understated