Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Material purchases January $ 12,040 February $ 14,150 March $ 10,970 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 $6,500. The budgeted cash payments for materials in January are: Multiple Choice $6,500. $9,270. O $12,520. $13,095. $18,540