Optek Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Optek’s gross profit rate averages 39%. The following information for the first quarter is available from its records.

January 1 beginning inventory . . . . . . . . .  $ 312,580

Cost of goods purchased . . . . . . . . . . . .        944,040

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      1,391,160

Sales returns . . . . . . . . . . . . . . . . . . . . . .             8,760

Required

Use the gross profit method to estimate the company’s first-quarter ending inventory.