Product X contains 2 Direct materials (A) and (B) .

For the month of June,

Expected preduction 125,000 litres.

Each litre requires 200 millilitres of (A)and 800 millilitres of (B).

The cost of (A) $0.65 per litre and the cost of (B) is $1.85 per litre.

• Company pays for the purchasing in the month it is purchased.
• The inventory control clerk usually keeps enough inventory on hand to satisfy 5% of the next month's production.
• July's production is expected to be 135,000 litres.

How much cash should be available for purchases of (A) and (B) in June?