Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 63-83

1963-1 C.B. 106

Sec. 472

IRS Headnote

Price indexes for July 1962, published by the Bureau of Labor Statistics on August 29, 1962, for use by department stores employing the retail inventory and last-in, first-out inventory methods.

Full Text

Rev. Rul. 63-83

The following price indexes for July 1962, published by the Bureau of Labor Statistics on August 29, 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 June 30, 1962, and July 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 July

       Department                      July     July      1961 to

         Group                         1962     1961      July 1962

1. Piece Goods_______________________ 203.9    203.4         0.2

2. Domestics and Draperies___________ 206.6    204.2         1.2

3. Women's and Children's Shoes______ 270.4    264.8         2.1

4. Men's and Boys' Shoes_____________ 257.9    254.4         1.4

5. Infants' Wear_____________________ 178.0    176.2         1.0

6. Women's Underwear_________________ 180.6    179.4         0.7

7. Women's and Girls' Hosiery________ 157.6    157.8        -0.1

8. Women's and Girl's Accessories____ 193.6    188.5         2.7

9. Women's Outerwear and Girls' Wear_ 185.2    183.4         1.0

10. Men's Clothing____________________ 229.1    226.8         1.0

11. Men's Furnishings_________________ 199.0    199.3        -0.2

12. Boys' Clothing and Furnishings____ 210.8    212.9        -1.0

13. Jewelry___________________________ 182.9    180.1         1.6

14. Notions___________________________ 175.5    168.8         4.0

15. Toilet Articles and Drugs_________ 203.8    197.3         3.3

16. Furniture and Bedding_____________ 231.4    227.6         1.7

17. Floor Covering____________________ 193.6    193.4         0.1

18. Housewares _______________________ 233.4    228.1         2.3

19. Major Appliances__________________ 131.4    130.2         0.9

20. Radios and Television Sets________ 124.1    127.1        -2.4

    Groups 1-15: Soft Goods___________ 203.7    201.3         1.2

    Groups 16-20: Durable Goods_______ 198.7    196.4         1.2

Store Total___________________________ 202.7    200.3         1.2

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