On January 1, JKR Shop had $510,000 of beginning inventory at cost. In the first quarter of the year, it purchased $1,650,000 of merchandise, returned $23,700, and paid freight charges of $38,200 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 40%, and the store had $2,060,000 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. Beginning inventory, January 1 Net cost of goods purchased Cost of goods available for sale Estimated March 31 inventory $ 510,000

On January 1, JKR Shop had $510,000 of beginning inventory at cost in the first quarter of the year, it purchased $1,650,000 of merchandise, returned $23,700, and paid freight charges of $38,200 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 40%, and the store had $2,060,000 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