Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Waywards gross profit rate averages 40%. The following information for the first quarter is available from its records.

January 1 beginning inventory	$	470,260
Cost of goods purchased		1,109,050
Sales		1,361,150
Sales returns		11,150

Required:

Use the gross profit method to estimate the companys first quarter ending inventory.

Beginning Inventory	$470,260
Net cost of goods purchased	1,109,050
	$1,579,310
Estimated March 31 inventory