n July of the current year, the accountant for Bradford Imports is in the process of preparing financial statements for the quarter ended June 30. The physical inventory, however, was last taken on June 5, and the accountant must establish the approximate cost at June 30 from the following data:\ \ Physical inventory, June 5 $900,000\ Transactions for the period June 5June 30: \ Sales 700,000\ Purchases 400,000\ \ \ The gross profit on sales has consistently averaged 40 percent of sales. Using the gross profit method, compute the approximate inventory cost at June 30.