Exercise $6-21$B $($Static$)$ Estimating ending inventory$$gross profit method LO P$4$

On January $1,$ JKR Shop had $$225,000$ of beginning inventory at cost$.$ In the first quarter of the year, it purchased $$795,000$ of merchandise, returned $$11,550,$ and paid freight charges of $$18,800$ on purchased merchandise, terms FOB shipping point. The company$$s gross profit averages $30\%,$ and the store had $$1,000,000$ of net sales $($at retail$)$ in the first quarter of the year.

Use the gross profit method to estimate its cost of inventory at the end of the first quarter.