Problem 6-10AB (Algo) Gross profit method LO P4 Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 25%. The following information for the first quarter is available from its records. Cost of goods purchased Beginning inventory, January 1 $ 440,260 1,079,050 1,331,150 10,850 Sales Sales returns Required: Use the gross profit method to estimate the company's first-quarter ending inventory. Beginning inventory, January 1 Net cost of goods purchased Estimated March 31 inventory $ 440,260 1,079,050 $ 1,519,310