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.

Beginning inventory, January 1	$	440,260
Cost of goods purchased		1,079,050
Sales		1,331,150
Sales returns		10,850

Required: Use the gross profit method to estimate the company's first quarter ending inventory.