BMR inc. manufactures gardening tools. Most of the direct material purchases are done during the spring season. Here is the direct materials purchase budget for the months of March through June:

	march	april	may	june	total
Budgeted purchases	$100,000	$350,000	$400,000	$200,000	$1,050,000

The business has the following credit terms with its suppliers: a 2 % discount if the payment is made during the month of the purchase, the remainder having to be paid in the month following the purchase. In order to benefit from the discount offered by its suppliers, BMR inc. generally pays 40 % of its purchases during the month of the purchase, the rest being paid during the month following the purchase.

What is the amount of the cash outflows of the month June related to direct material purchases?

• A. $318,400
• B. $313,600
• C. None of the above
• D. $316,000
• E. $78,400