Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months:

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:

A.$6,500.

B.$9,270.

C.$12,520.

D.$13,095.

E.$18,540.