Rev. Rul. 83-87

1983-1 C.B. 107.

                       Internal Revenue Service
                                 Revenue Ruling

                    LIFO;  PRICE INDEXES;  DEPARTMENT STORES

                            Published: June 20, 1983

SECTION 472. - -LAST-IN, FIRST-OUT INVENTORIES, 26 CFR 1.472-1: Last-in, first- out inventories

  LIFO;  price indexes;  department stores.  The January 1983 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods of valuing inventories for tax years ending December 31, 1982, and January 31, 1983.

  The following price indexes for January 1983 published by the Bureau of Labor Statistics on February 28, 1983, for use by department stores are accepted by the Internal Revenue Service under section 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 72-21, 1972-1 C.B. 745, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended December 31, 1982, and January 31, 1983.

  Indexes are given on a national basis for the store total, for 20 major groups of departments, and for two special combinations--soft and durable goods.  The store total index covers 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)
        Department group                   January      January     Percentage
                                            1982         1983         Change
                                                                       from
                                                                     January
                                                                     1982 to
                                                                     January
                                                                    1983 [FN1]
-------------------------------------------------------------------------------
I.      Piece Goods                         379.0        392.9              3.7
II.     Domestics and Draperies             484.0        504.2              4.2
III.    Women's and Children's Shoes        532.1        539.2              1.3
IV.     Men's and Boys' Shoes               665.0        669.6               .7
V.      Infants' Wear                       444.7        464.9              4.5
VI.     Women's Underwear                   370.0        388.6              5.0
VII.    Women's and Girls' Hosiery          215.3        221.9              3.1
VIII.   Women's and Girls' Accessories      398.6        412.6              3.5
IX.     Women's Outerwear and Girls'        319.0        315.1             -1.2
          Wear
X.      Men's Clothing                      431.4        441.3              2.3
XI.     Men's Furnishings                   431.3        451.1              4.6
XII.    Boy's Clothing and Furnishings      389.1        407.5              4.7
XIII.   Jewelry                             690.6        678.4             -1.8
XIV.    Notions                             423.7        464.1              9.5
XV.     Toilet Articles and Drugs           526.2        566.9              7.7
XVI.    Furniture and Bedding               495.3        502.6              1.5
XVII.   Floor Coverings                     411.3        427.1              3.8
XVIII.  Housewares                          700.0        719.0              2.7
XIX.    Major Appliances                    231.4        238.3              3.0
XX.     Radio and Television                118.2        115.8             -2.0
        Groups I-XV:Soft Goods              429.6        442.5              3.0
        Groups XVI-XX:Durable Goods         428.9        437.2              1.9
        Store Total                         428.9        440.9              2.8
FN1. Absence of a minus sign before percentage change in this column signifies
  price increase.

Rev. Rul. 83-87, 1983-1 C.B. 107.