2.4 Sixty percent (60%) of the materials are purchased for cash in order to take advantage of a 5% discount and the balance is purchased on credit. Creditors are paid in the month after the purchase. 2.5 2.6 2.7 Direct labour costs are incurred in line with production and will be paid during the month in which they are incurred. Variable manufacturing overheads are payable in the month in which they are incurred. Fixed manufacturing and non-manufacturing costs are expected to amount to R550 000 per month, excluding depreciation of R75 000 per month. These costs are payable in the month in which they are incurred. 2.8 The sales commission of 6% is payable in the month in which it is incurred. 2.9 Additional administration costs of R40 per unit sold are payable in the month in which they are incurred. 2.10 2.10 The company will invest 10% of the total sales for March in a notice deposit account on 31 March 2022. 2.11 The balance of the current liabilities as at 31 December 2021 will be settled during January 2022