Karen's cosmetics uses a normal cost system and has the following balances at the end of it's first year's operations.

WIP Inventory $198,000

Finished Goods Inventory $132,000

Cost of goods sold $495,000

Actual factory overhead $416,000

Factory Overhead applied $458,000

Requirement

1. Compute cost of goods sold for two different ways to dispose of the year-end overhead balances. By how much would gross profit differ?