4. The accountant for the Ricardo Company made a mistake. The company uses Normal Costing. An actual overhead item was recorded as $23,000, but it should have been recorded as $32,000. The financial statements have already been prepared at the end of the year. All underallocated or overallocated overhead is closed totally to Cost of Goods Sold at the end of the year. For each of the following, tell whether the amount on the financial statements was (A) overstated (too high); (B) Understated (too low); or (C) Neither. Cost of Goods Manufactured (COGM) Net Operating Income 4. The accountant for the Ricardo Company made a mistake. The company uses Normal Costing. An actual overhead item was recorded as $23,000, but it should have been recorded as $32,000. The financial statements have already been prepared at the end of the year. All underallocated or overallocated overhead is closed totally to Cost of Goods Sold at the end of the year. For each of the following, tell whether the amount on the financial statements was (A) overstated (too high); (B) Understated (too low); or (C) Neither. Cost of Goods Manufactured (COGM) Net Operating Income