On January 1, The Parts Store had a $510,000 inventory at cost. During the first quarter of the year, it purchased $1,650,000 of merchandise, returned $26,100, and paid freight charges on purchased merchandise totalling $40,600. During the past several years, the stores gross profit on sales has averaged 30%. Under the assumption the store had $2,060,000 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