7. An error was made in the computation of the percentage of completion of the current year ending Work-in-Process inventory. The error resulted in assigning a higher percentage of completion to ench component than was actually the case. Assume that there was no beginning inventory. The effect of this error on equivalent units, cost per equivalent unit and costs assigned to the goods transferred out would be: Cost per Equivalent unit Overstate Understate Understate Understate Goods transferred Overstate Understate Understate Overstate Equivalent units A) Overstate B) Understate C) Overstate D) Overstate a. Item A b. Item B c. Item C d. Item D