On January 1, The Parts Store had a $420,000 inventory at cost. During the first quarter of the year, it purchased $1,560,000 of merchandise, returned $21,600, and paid freight charges on purchased merchandise totalling $36,100. During the past several years, the stores gross profit on sales has averaged 25%. Under the assumption the store had $1,970,000 of sales during the first quarter of the year, use the gross profit method to estimate its inventory at the end of the first quarter.