An Error in the Physical Count of Goods on Hand $\begin{array}{cc} \text { Cost of Goods Sold } & \text { Net Incom } \\\end{array}$

An error in the physical count of goods on hand at the end of a period resulted in a $18000 overstatement of the ending inventory. The effect of this error in the current period is $\begin{array}{cc} \text { Cost of Goods Sold } & \text { Net Incom } \\\end{array}$

A) $\begin{array}{cc} \text { Understated } && \text { Understated } \\\end{array}$
B) $\begin{array}{cc} \text { Over stand } &&& \text { Over stand } \\\end{array}$
C) $\begin{array}{cc} \text { Understated } &&& \text { Over stand } \\\end{array}$
D) $\begin{array}{cc} \text { Over stand } &&& \text { Understated } \\\end{array}$