On January 1, JKR Shop had $610,000 of inventory at cost. In the first quarter of the year, it purchased $1,750,000 of merchandise, returned $24,700, and paid freight charges of $39,200 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 30%, and the store had $2,160,000 of net sales (at retail) in the first quarter of the year. Required: Use the gross profit method to estimate its cost of inventory at the end of the first quarter. $ 610,000 Beginning inventory Net cost of goods purchased Estimated March 31 inventory