Exercise 6-12 Estimating ending inventory-gross profit method LO6 On January 1, The Parts Store had a $400,000 Inventory at cost. During the first quarter of the year, it purchased $1.540.000 of returned $20,600, and paid freight charges on purchased merchandise totalling $3500 During the past ross profit on sales has averaged 30%. Under the assumption the store had $1,950,000 of sales during the first quarter of use the gross profit method to estimate its inventory at the end of the first quarter