Under statement of closing work-in-progress in the period will

The correct answer is: D. Understate net income in that period.

Work-in-progress is a measure of the costs of goods that have been partially completed but are not yet ready for sale. It is included in the cost of goods sold, which is a major expense on the income statement. When work-in-progress is understated, the cost of goods sold will also be understated. This will result in an overstatement of gross profit and net income.

Here is a more detailed explanation of each option:

• A. Understate cost of goods manufactured in that period. This is incorrect because work-in-progress is included in the cost of goods manufactured. When work-in-progress is understated, the cost of goods manufactured will also be understated.
• B. Overstate current assets. This is incorrect because work-in-progress is not a current asset. It is an asset that is used in the production of goods and services.
• C. Overstate gross profit from sales in that period. This is incorrect because gross profit is calculated by subtracting the cost of goods sold from sales. When work-in-progress is understated, the cost of goods sold will also be understated. This will result in an overstatement of gross profit.
• D. Understate net income in that period. This is correct because net income is calculated by subtracting expenses from revenues. When work-in-progress is understated, the cost of goods sold will also be understated. This will result in an overstatement of gross profit and net income.