Kevin Is the Accountant for Alex Enterprises, a Manufacturer of Baseball

Kevin is the accountant for Alex Enterprises, a manufacturer of baseball bats. Kevin made an error in the accounting process. Work-In-Process (WIP) was overstated by $25,000 for the month. What impact would this error have on both the cost of goods sold (COGS) and net income?

A) COGS would be overstated by $25,000; net income would be overstated by $25,000.
B) COGS would be overstated by $25,000; net income would be understated by $25,000.
C) COGS would be understated by $25,000; net income would be overstated by $25,000.
D) COGS would be understated by $25,000; net income would be understated by $25,000.