Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Material purchases January $ 12,640 February $ 14,750 March $ 11,570 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,000. The budgeted cash payments for materials in January are: Multiple Choice $7,000. 4. 13695 5. 19640 $9,820 O $13,320