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On January 1, Java Shop had $360,000 of inventory at cost. In the first quarter of the year, it purchased $1,267,200 of merchandise, returned $11,450, and paid freight charges of $18,100 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 34%, and the store had $1,594,800 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. (Omit the "tiny_mce_markerquot; sign in your response.)Cost of inventory at the end of the first quarter?
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