3. The following are the expected costs for direct materials, direct labor and manufacturing overhead:

DM DL Overhead

January $8/unit $15/unit $7,500 + $1.00 per unit produced

February $8/unit $15/unit $7,500 + $1.00 per unit produced

March $8/unit $15/unit $7,500 + $1.00 per unit produced

A. Direct materials are paid 20% in the month incurred and 80% in the following month.

Account payable for materials as of December 31, 2014 is $5,000; this amount will be paid in January 2015.

B. Direct labor is paid in the month incurred.

C. Overhead costs are paid in the month incurred. Fixed overhead includes depreciation of $2,500 per month.

*****required production was 1380 for January, 2060 for February, 2440 for March

Need to do:

Direct material , including schedule of expected cash disbursements with calculations