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 40%. The following information for the first quarter is available from its records.

January 1 beginning inventory	$	390,260
Cost of goods purchased		1,029,050
Sales		1,281,150
Sales returns		10,350

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

Beginning inventory	$390,260
Net cost of goods purchased	1,029,050
Cost of goods available for sale	$1,419,310
Estimated cost of goods sold
Estimated March 31 inventory