Blossom, Inc. estimates the cost of its physical inventory at March $31$ for use in interim financial

statements. Blossom's rate of markup on cost is $30\%.$ The following account balances are available

at March $31$:

Inventory, March $1$ $$560000$

Purchases $440000$

Purchase returns $30000$

Sales during March $780000$

The estimate of the cost of inventory at March $31$ would be

$$409000.$

$$190000.$

$$370000.$

$$220000.$