On January 1, JKR Shop had $225,000 of beginning inventory at cost. In the first quarter of the year, it purchased $802,250 of merchandise. The company's gross profit averages 30%, and the store had $1,000,000 of net sales (at retail) in the first quarter of the year. Use the gross profit method to estimate its cost of inventory at the end of the first quarter. $ 1,000,000 $ Sales Beginning inventory, January 1 Net cost of goods purchased Cost of goods available for sale Estimated ending inventory Estimated cost of goods sold 225,000 802,250 1,027,250 327,250 % $ $ 700,000 300,000 $