A Paris manufacturer uses a job-order system. At the end of 2010 the following balances existed (in millions of euros):

Cost of goods sold ........................?50
Finished goods .............................120
Work-in-process ............................30
Factory overhead (actual) ............70
Factory overhead (applied) ..........60

1. Prepare journal entries for two different ways to dispose of the under applied overhead.

2. Gross profit, before considering the effects of requirement 1, was 43 million. What is the adjusted gross profit under the two methods demonstrated?