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    How many cars does Ryno expect to produce (i.e., assemble) in January?

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    Ryno Corporation assembles cars by purchasing frames, wheels, and other parts from various suppliers. Consider the following data:
    - The company plans to sell 25,000 cars during each month of the year's first quarter.
    - A review of the accounting records disclosed a finished-goods inventory of 1,400 cars on January 1 and an expected finished-goods inventory of 1,850 cars on January 31.
    - Ryno has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% at month-end.

    Question:
    A. How many cars does Ryno expect to produce (i.e., assemble) in January?
    B. How many wheels must be purchased to satisfy production needs?

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    https://brainmass.com/business/capital-budgeting/cars-does-ryno-expect-produce-assemble-january-307438

    Solution Preview

    A. How many cars does Ryno expect to produce (i.e., assemble) in January?

    Amount to assemble is the sales + what we want in ending inventory. Some amount is available in beginning inventory ...

    Solution Summary

    The solution explains how to make a production and a purchases budget for a car company.

    $2.19

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