This accounting question has been slowly driving me insane, is there anyone that can answer this??

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I am doing corrections of errors now. I fully understand errors, except for one instance; Inventory. I understand how an overstatement or understatement of Cost of goods sold in one period will turnover in the next period when the books are closed, because it is an expense account. What I don't understand is what happens to the inventory account while this is happening??? If the ending inventory of 2011 is understated by 10,000 isn't the beginning inventory of 2012 still understated by 10,000? It's physical inventory, why would it turn over in the next year as some people have tried to explain to me. It seems to me that if inventory is understated in one year, it's still understated in the next year. Cost of goods sold is understandable counterbalancing because it is an expense account. If anyone can explain to me what exactly happens to inventory over the course of 2 periods of understatement, overstatement I would greatly appreciate it. This is driving me nuts

This accounting question has been slowly driving me insane, is there anyone that can answer this??