Blossom, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of markup on cost is 20%. The following account balances are available:

Inventory, March 1	$537000
Purchases	417000
Purchase returns	7000
Sales during March	711000

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

$354500.

$361500.

$243000.

$236000.