Fill in the blanks to make correct statements about the Direct Materials Budget. The Direct Materials budget is based on the production Budget. The first step in calculating the Direct Materials Budget is to multiply the #units to be produced in each period by the quantity of type your answer... required for each unit. This tells me the quantity of DM needed for each period's production. I need enough direct materials for 1) the type your answer. period's DM needs, and 2) a certain percentage of the type your answer... period's DM needs. Then I must subtract my type your answer... of direct materials, which comes from the extra I bought in the previous period. Finally, I can find the quantity of Direct Materials I need to type your answer... and calculate what the cost will be