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.
$\begin{array}{|l|l|l|}\hline\text { Inventory error: } & \text { Cost of goods sold is: } & \text { Net income is: } \\\hline \text { Understatement of beginning inventory } & & \\\hline \text { Understatement of ending inventory } & & \\\hline \text { Overstatement of beginning inventory } & & \\\hline \text { Overstatement of ending inventory } & &\\\hline\end{array}$