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	$ 480,260
Cost of goods purchased	1,119,050
Sales	1,371,150
Sales returns	11,250

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