Exercise $6-12$ Estimating ending inventory$-$gross profit method LO$6$

On January $1,$ The Parts Store had a $$550,000$ inventory at cost$.$ During the first quarter of the year, it purchased $$1,690,000$ of merchandise, returned $$28,100,$ and paid freight charges on purchased merchandise totalling $$42,600.$ During the past several years, the store's gross profit on sales has averaged $25\%.$ Under the assumption the store had $$2,100,000$ of sales during the first quarter of the year, use the gross profit method to estimate its inventory at the end of the first quarter.

Ending inventory