An employee accidentally overstated the years advertising expense by $50,000. Which of the following statement is correct regarding the consequence of this error?

Multiple Choice

• None of the answers provided is correct

• COGS will be overstated by $50,000 and COGM will be understated by $50,000

• Cost of goods manufactured (COGM) will be overstated by $50,000

• Cost of goods sold (COGS) will be overstated by $50,000

• Both COGM and COGS will be overstated by $50,000.