On January 1, KB Store had $450,000 of inventory at cost. In the first quarter of the year, it purchased $1,590,000 of merchandise, returned $23,100, and paid freight charges of $37,600 on purchased mer¬ chandise, terms FOB shipping point. The store’s gross profit averages 30%. The store had $2,000,000 of retail sales (net) in the first quarter of the year. Use the gross profit method to estimate its cost of inventory at the end of the first quarter.