Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year. The following information is available: Beginning inventory $ 590,000 1,090,000 Purchases Sales 1,900,000 Sales returns (to stock) 40,000 45,000 In-bound shipping on purchases Out-bound shipping to customers 61,000 136,000 HST on purchases HST on net sales. 209,000 Import duties 40,000 Inventory storage costs 6,000 The average gross margin ratio is 30%. Required: Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter. Ending inventory Cost of sales