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Use this information for August production to answer the question that follows.

Production estimates for August are as follows: Estimated inventory (units), August 112,000 Desired inventory (units), August 319,000 Expected sales volume (units), August75,000

For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.)3 lb. Material B ($18 per lb.) lb.

The total direct materials purchases (assuming no beginning or ending inventory of material) of Material A and Material B required for August production is

a. $1,080,000 for A; $648,000 for B

b. $1,125,000 for A; $675,000 for B

c. $1,080,000 for A; $1,296,000 for B

d. $1,170,000 for A; $702,000 for B