Question - 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.