This is a simple pattern with a striking impact, especially with highly contrasting colors. I used Plymouth Yarn Encore worsted weight in:

1.Black (Color 0217)
2.Grey (Color 194)
3.White (Color 0208)

There are many beard patterns on Ravelry. Check them out and pick your favorite. I used these two patterns for my Beardie Beanie:

Beard: http://www.ravelry.com/patterns/library/beard-for-the-beanie

Mustache: http://www.ravelry.com/patterns/library/handlebar-moustache