Jennine manufactures rubber gloves and face shields in the Washington State. Her firm tried to cut costs by relying on an intern to complete the accounting function. The intern mistakenly classified a product cost as an expense that totaled $13,300. Her produced 1,330 units of product and sold 665 of them during the year. Management is paid a bonus equal to 2% of net income. In the year in which the mistake was made:

Multiple Choice

a. management bonuses were underpaid.

b. the company's income statement portrayed a more favorable position than actually existed.

c. product costs were overstated.

d. the company's net income was overstated.