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On January 1, The Parts Store had a $370,000 inventory at cost. During the first quarter of the year, it purchased $1,510,000 of merchandise, returned $19,100, and paid freight charges on purchased merchandise totalling $33,600. During the past several years, the store's gross profit on sales has averaged 30%. Under the assumption the store had $1,920,000 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.
Problem 1: what is the ending inventory?
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