A company has an immaterial amount of overapplied overhead at the end of an accounting period, which they prorated between COGS, FG and WIP accounts rather than closing overhead variance entirely to the COGS. How will this error affect the following accounts (assume that COGS, FG, WIP and RM accounts have nonzero ending balances)?

Cost of Goods Sold Finished Goods Inv. Work-in-Process Inv. RM

a. Overstated Understated Understated Unaffected

b. Overstated Overstated Overstated Unaffected

c. Understated Understated Understated Understated

d. Understated Overstated Overstated Unaffected

e. Understated Overstated Overstated Overstated