5-10AB (Algo) Gross profit method LO P4 Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 25%. The following information for the first quarter is available from its records. Beginning inventory, January 1 $ Cost of goods purchased Sales Sales returns 400,260 1,039,050 1,291,150 10,450 Required: Use the gross profit method to estimate the company's first quarter ending inventory. Beginning inventory, Jan. 1 Net cost of goods purchased $ 400,260 1,039,050 Estimated March 31 inventory $ 1,439,310