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	$78,500	$82,000	$80,750

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following the purchase. The December Accounts Payable balance is $36,500. The budgeted cash payments for materials in January are:

		$75,750
		$82,000
		$80,250
		$78,500

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	$78,500	$82,000	$80,750

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following the purchase. The December Accounts Payable balance is $36,500. The expected balance of the Accounts Payable account in January 31 is:

		$41,000
		$39,250
		$36,500
		$40,375