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Production estimates for August for Jay Company are as follows:
| Estimated inventory (units), August 1 | 12,000 |
| Desired inventory (units), August 31 | 9,000 |
| Expected sales volume (units), August | 75,000 |
For each unit produced, the direct materials requirements are as follows:
| Material A ($5 per lb.) | 3.0 lbs. |
| Material B ($18 per lb.) | 0.5 lb. |
The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is
Group of answer choices
$1,080,000 for A; $648,000 for B
$1,125,000 for A; $675,000 for B
$1,080,000 for A; $1,296,000 for B
$1,170,000 for A; $702,000 for B
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