The new accountant (Arnold) for Igloo Industries made a mistake in closing the books for the month. Arnold was supposed to close the over-applied manufacturing overhead proportionately to Work in Progress, Finished Goods, and Cost of Goods Sold. Instead, Arnold took a short-cut and closed the entire amount to Cost of Goods Sold. What can you conclude as a result of Arnold's error? Multiple Choice O Inventory on the balance sheet will be overstated. O Inventory on the balance sheet will be understated. O None of the above conclusions are correct. O Gross profit will be overstated. O Gross profit will be understated. O Two of the above conclusions are correct