Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 62-70

1962-1 C.B. 79

Sec. 472

IRS Headnote

Price indexes for January 1962, published by the Bureau of Labor Statistics on March 6, 1962, for use by department stores employing the retail inventory and last-in, first-out inventory methods.

Full Text

Rev. Rul. 62-70

The following price indexes for January 1962, published by the Bureau of Labor Statistics on March 6, 1962, for use by department stores employing the retail inventory and last-in, first-out inventory methods, are accepted by the Internal Revenue Service pursuant to section 1.472-1(k) of the Income Tax Regulations and Mimeograph 6244, C.B. 1948-1, 21, for appropriate application to inventories for taxable years of 12 months ended December 31, 1961, and January 31, 1962.

Indexes are given on a national basis for store total, for 20 major groups of departments, and for two special group combinations-soft and durable goods. The store total index includes all departments, including some not listed separately, with the following exceptions: candy, foods, liquor, tobacco, paints, and wallpaper, as well as contract departments.

            BUREAU OF LABOR STATISTICS, DEPARTMENT STORE

            INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

                      (January 1941 = 100)

                                                         Percent

                                                         Change /*/

                                                         from Jan.

       Department                      Jan.     Jan.     1961 to

         Group                         1962     1961     July 1962

1. Piece Goods_______________________ 204.7    202.4         1.1

2. Domestics and Draperies___________ 199.4    198.1         0.7

3. Women's and Children's Shoes______ 269.4    264.0         2.0

4. Men's and Boys' Shoes_____________ 257.5    253.2         1.7

5. Infants' Wear_____________________ 177.2    177.3        -0.1

6. Women's Underwear_________________ 178.9    178.9         0.0

7. Women's and Girls' Hosiery________ 156.8    157.9        -0.7

8. Women's and Girls' Accessories____ 193.2    187.1         3.3

9. Women's Outerwear and Girls' Wear_ 183.4    184.7        -0.7

10. Men's Clothing____________________ 227.8    226.4         0.6

11. Men's Furnishings_________________ 198.6    201.2        -1.3

12. Boys' Clothing and Furnishings____ 211.0    209.6         0.7

13. Jewelry___________________________ 180.4    179.7         0.4

14. Notions___________________________ 170.0    164.9         3.1

15. Toilet Articles and Drugs_________ 200.5    195.7         2.5

16. Furniture and Bedding_____________ 229.8    226.2         1.6

17. Floor Coverings___________________ 193.4    194.0        -0.3

18. Housewares _______________________ 228.0    229.0        -0.4

19. Major Appliances__________________ 131.7    130.5         0.9

20. Radio and Television Sets_________ 126.5    130.4        -3.0

    Groups 1-15: Soft Goods___________ 201.4    200.4         0.5

    Groups 16-20: Durable Goods_______ 197.1    196.9         0.1

Store Total___________________________ 200.6    199.7         0.5

/*/ Absence of a minus sign before percnt change in this column signifies price increases.