Wayman Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayman’s gross profit rate averages 30%. The following information for the first quarter is available from its records:

January 1 beginning inventory

325,950

Cost of goods purchased

942,525

Sales

1,201,750

Sales returns

9,780

Required

Use the gross profit method to estimate the company’s first-quarter ending inventory.