Vaughn, Inc. had $152,000 of inventory on hand at January 1 with a retail value of $259,000.

During the first six months of the year, Vaughn made purchases of $756,000 (not including freight in of $39,000). The goods purchased had a retail value of $1,544,000.

During the first six months of the year, Vaughn made markups of $42,300 and markdowns of $33,600 at retail.

Sales revenue for the first six months of the year was $1,539,000.

Using the conventional retail method, what was the cost of Vaughn's inventory on hand at June 30?

[NOTE: Carry your cost-to-retail percentage to at least one decimal point to make sure you fall within the allowed rounding error. i.e. 0.68317 should be 68.3%, not 68%.]