Pollus, Inc. performs inventory counts of its hockey sticks at the end of each fiscal year. The individual performing the count was distracted and inadvertently overstated the total inventory count by $1,200 at December 31, 2017. The individual counting the inventory at 12/31/2018 was more attentive and correctly counted the inventory. What effect did the inventory count error at 12/31/2017 have on:

I. 2018 Ending Inventory

II. 2018 Cost of Goods Sold

A Overstated I; Understated II

B No Effect on I; Overstated II

C No Effect on I; Understated II

D Understated I; Overstated II

E Overstated I; No Effect on II