Target Corporation prepares its financial statements according to U. S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material is also available under the Investor Relations link at the company’s website (www. target). Required: 1. What retail indices (internally measured or externally measured) does Target use to measure the LIFO provision? 2. Does Target adjust the retail value of inventory for permanent markups or permanent markdowns to effectively report inventory at the lower of cost or market? 3. Target has agreements with certain vendors whereby Target does not purchase or pay for merchandise until the merchandise is ultimately sold to a customer. Are sales and cost of sales of this inventory included in Target’s income statement? Is unsold inventory at the end of the year included as part of ending inventory in the balance sheet?

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?