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I think you're misunderstanding the rules. A formula is just a how-to guide on how to craft a given item, not an ingredient in crafting the item. You need a formula to craft the item (and a basic crafter's book contains all the formulas for common items in the core book, the equivalent of a general-purpose handyman's guide), but it isn't consumed or converted into the item or any way: it's just the game abstraction for having a woodworker's reference guide, the schematic to a trap, or whatever. See page 293 of the core book.
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