An employee accidentally overstated the year's advertising expense by entering in the books as $500,000 instead of $450,000. Which of the following correctly depicts the effect of this error?

	a.	Cost of goods manufactured will be overstated by $50,000
	b.	Cost of goods sold will be overstated by $50,000
	c.	Both cost of goods manufactured and cost of goods sold will be overstated by $50,000
	d.	Cost of goods sold will be overstated by $50,000, and cost of goods manufactured will be understated by $50,000
	e.	None of the above

Answer rating: 100% (QA)

d Cost of goods sold will be overstated by 500... View the full answer