Rev. Rul. 85-11

1985-1 C.B. 173, 1985-7 I.R.B. 26.

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: February 19, 1985

Section 472.-Last-in, First-Out Inventories, 26 CFR 1.472-1: Last-in, first-out inventories

  LIFO; price indexes; department stores. The October 1984 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ending on, or with reference to, October 31, 1984.

  The following price indexes for October 1984 were issued by the Bureau of Labor Statistics on November 26, 1984, for use by department stores, and 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 on, or with reference to, October 31, 1984.

  Indexes are prepared on a national basis for the store total, for 20 major groups of departments, and for two special combinations-soft 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)
-------------------------------------------------------------------------------
                                                                    Percentage
                                                                  Change from
                                          October     October     October 1983
                                                                       to
                                           1983         1984      October 1984
                                                                     [FN1]
-------------------------------------------------------------------------------
     I.  Piece Goods ..................... 389.4       393.6                1.1
    II.  Domestics and Draperies ......... 522.5       559.8                7.1
   III.  Women's and Children's Shoes .... 555.0       559.4                 .8
    IV.  Men's and Boys' Shoes ........... 687.4       709.2                3.2
     V.  Infants' Wear ................... 483.2       480.9                -.5
    VI.  Women's Underwear ............... 418.5       424.9                1.5
   VII.  Women's and Girls' Hosiery ...... 230.6       233.4                1.2
  VIII.  Women's and Girls'Accessories ... 428.6        46.4                4.2
    IX.  Women's Outerwear and Girls'
           Wear .......................... 351.4       356.3                1.4
     X.  Men's Clothing .................. 464.1       474.6                2.3
    XI.  Men's Furnishings ............... 458.5       474.2                3.4
   XII.  Boys' Clothing and
           Furnishings ................... 433.6       443.8                2.4
  XIII.  Jewelry ......................... 697.4       693.7                -.5
   XIV.  Notions ......................... 464.2       479.3                3.3
    XV.  Toilet Articles and Drugs ....... 602.2       623.3                3.5
   XVI.  Furniture and Bedding ........... 515.8       536.1                3.9
  XVII.  Floor Coverings ................. 450.0       454.1                 .9
XVIII.  Housewares ...................... 716.3       706.9               -1.3
   XIX.  Major Appliances ................ 242.0       242.3                 .1
    XX.  Radio and Television ............ 113.9       108.9               -4.4
         Groups I-XV: Soft Goods ......... 467.5       480.0                2.7
         Groups XVI-XX: Durable Goods .... 442.2       444.2                 .5
         Store Total ..................... 460.3       469.7                2.0
FN1. Absence of a minus sign before percentage change in this column signifies
  price increase.

Rev. Rul. 85-11, 1985-1 C.B. 173, 1985-7 I.R.B. 26.