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