3. Preparing a direct materials budget- Each unit requires 3 lhs. of DM DM costs $0.60 per Ib. Miles will begin the year with 200000 lbs. of DM, but 30,000 lbs. at the end of Jancary, 35,000 at the end of February, and 40,000 lbs. at the end of March Formulas: (DM/unit * Units) + Destred Et = DM Needed DM Needed - Estimated Bi = DM to Purchase DM to Purchase CostUUnit = Total DM Cost 3. Preparing a direct materials budget- Each unit requires 3 lhs. of DM DM costs $0.60 per Ib. Miles will begin the year with 200000 lbs. of DM, but 30,000 lbs. at the end of Jancary, 35,000 at the end of February, and 40,000 lbs. at the end of March Formulas: (DM/unit * Units) + Destred Et = DM Needed DM Needed - Estimated Bi = DM to Purchase DM to Purchase CostUUnit = Total DM Cost