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		$12,040		$14,150		$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

• $18,540.

• $13,095.

• $6,500.

• $9,270.

• $12,520.