Gloria Cosmetics uses a normal cost system and has the following balances at the end of its first year’s operations:

Work-in-process inventory ....................$200,000
Finished-goods inventory ........................200,000
Cost of goods sold.....................................400,000
Actual factory overhead ..........................409,000
Factory overhead applied .......................457,000

Prepare journal entries for two different ways to dispose of the year-end overhead balances. By how much would gross profit differ?