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Preparing a direct materials budget Each unit requires 3 l b s . of DM DM costs $ 0 . 6 0 per lb .

Preparing a direct materials budget
Each unit requires 3lbs. of DM
DM costs $0.60 per lb.
Miles will begin the year with 20,000lbs. of DM, but 30,000lbs. at the end of January, 35,000 at the end of February, and 40,000 lbs. at the end of March
Formulas:
DM/unit Units
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