Determine the Effect on Cost of Goods Sold and Net

Determine the effect on cost of goods sold and net income for the current year of the following inventory errors. Indicate your answer with either a + (overstated)or a - (understated). $\begin{array} { | l | l | l | l | } \hline \text { Item } & { \text { Error } } & \begin{array} { c } \text { Effect on } \\\text { Cost } \\\text { of Goods Sold }\end{array} & \begin{array} { c } \text { Effect on } \\\text { Net Income }\end{array} \\\hline \text { 1) } & \text { Beginning inventory is overstated. } & & \\\hline \text { 2) } & \text { Ending inventory is understated. } & & \\\hline \text { 3) } & \text { Beginning inventory is understated. } & & \\\hline \text { 4) } & \text { Ending inventory is overstated. } & & \\\hline\end{array}$