Fortune Company's Direct Materials Budget Shows the Following Cost of Materials

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

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.