For the last several years Conway Corporation has operated with a gross profit rate of 58%. On January 1 of the current year, the company had on hand inventory with a cost of $800,000. Purchases of merchandise during January amounted to $130,000, and sales for the month were $520,000. Using the gross profit method, what is the estimated inventory at January 31?

$520,000.

$218,400.

$301,600.

$711,600.