Which statement best reflects the effects of inventory costing methods on the Income Statement: Cost of goods sold is understated and net income is understated when ending inventory is understated. Cost of goods sold is overstated and net income is overstated when beginning inventory is understated. Cost of goods sold is understated and net income is overstated when ending inventory is overstated. Cost of goods sold is overstated and net income is overstated when beginning inventory is overstated