Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March Material purchases | $12,040l 14,150l 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: Select one: Q a. $6,500. 0 [139,270. 0 (2. $12,520. 0 d. $13,095. 0 e1 $18,540