On January $1,$ Willard Company had $$302,580$ of beginning inventory at cost$.$ In the first quarter of the year, it purchased $$1,770,000$ of merchandise, returned $$868,360,$ and paid freight charges of $$39,400$ on purchased merchandise, terms FOB shipping point. The company's gross profit averages $34\%,$ and the store had $$1,211,160$ of sales $($at retail$)$ and $$8,410$ of sales returns 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.

$$834,685$

$$1,278,765$

$$449,805$

$$444,254$

$$831,826$