Target Case

Target Corporation prepares its financial statements according to U$.$S$.$ GAAP. Target's financial statements

and disclosure notes for the year ended January $30,2016,$ are available in Connect. This material is also available

under the Investor Relations link at the company's website $($

www$.$target.com$).$ Target's share$-$based compensa$-$

tion includes several long$-$term incentive plans.

Required:

Refer to Target's financial statements for the year ended January $30,2016.$ Note $12$ provides information on

Target's inventories. What method does Target use to report most of its inventories? If Target changed that

method to another method, what are the steps Target would take to account for and report the change?

Suppose that Target uses FIFO costing method but decided to change to the LIFO method. What are the steps

Target would take to account for and report the change?