A company produces doors. The following information wasgathered to prepare budgets for the upcoming year beginning January1:
sales forecast inunits................................... 5,500 doors
finished goods inventory,Jan1....................... 620 doors
target finished goods inventory,Dec1............. 480 doors
raw materials inventory-steel, Jan1................ 40,000lbs
targetinventory-steel,Dec1.......................... 80,000lbs
raw materialsinventory-glass,Jan1.................. 6,000 squarefeet
target inventory-glass,Dec1............................ 4,000square feet
budgeted purchase price-steel......................... $4 perlb
budgeted purchase price-glass.........................$2 persquare foot
The manufacture of each door requires 20 lbs of steel and 6 square feet of glass
Why might this company's target level of steel inventory be higher than last year's ending balance and its target level of glass inventory be lower than last year's ending balance?