Rev. Rul. 85-28
1985-1 C.B. 173, 1985-11 I.R.B. 16.
Internal Revenue Service
Revenue Ruling
LIFO; PRICE INDEXES; DEPARTMENT STORES
Published: March 18, 1985
Section 472.-Last-in, First-out Inventories, 26 CFT 1.472-1: Last-in, first-out inventories
LIFO; price indexes; department stores. The November 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 ended on, or with reference to, November 30, 1984.
The following price indexes for November 1984 were issued by the Bureau of Labor Statistics on December 24, 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, November 30, 1984.
Indexes are prepared 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)
Percentage
Change from
November
November November 1983 to
1983 1984 November
1984
[FN1]
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I. Piece Goods ........................ 380.2 394.9 3.9
II. Domestics and Draperies ............ 525.4 554.7 5.6
III. Women's and Children's
Shoes .............................. 551.0 557.0 1.1
IV. Men's and Boy's Shoes .............. 691.3 710.6 2.8
V. Infants' Wear ...................... 480.0 481.4 .3
VI. Women's Underwear .................. 419.3 425.4 1.5
VII. Women's and Girls' Hosiery ......... 231.7 232.8 .5
VIII. Women's and Girls'
Accessories ........................ 427.1 445.9 4.4
IX. Women's Outerwear and
Girls' Wear ........................ 346.1 350.4 1.2
X. Men's Clothing ..................... 467.9 475.4 1.6
XI. Men's Furnishings .................. 460.4 475.5 3.3
XII. Boys' Clothing and
Furnishings ........................ 432.2 444.5 2.8
XIII. Jewelry ............................ 707.4 689.4 -2.5
XIV. Notions ............................ 464.5 479.0 3.1
XV. Toilet Articles and Drugs .......... 607.3 625.0 2.9
XVI. Furniture and Bedding .............. 518.2 534.8 3.2
XVII. Floor Coverings .................... 450.4 455.5 1.1
XVIII. Housewares ......................... 717.8 717.0 -.1
XIX. Major Appliances ................... 242.9 241.2 -.7
XX. Radio and Television ............... 114.0 107.7 -5.5
Groups I-XV: Soft Goods ............ 467.4 477.8 2.2
Groups XVI-XX: Durable
Goods .............................. 443.4 445.8 .5
Store Total ........................ 460.4 468.5 1.8
FN1. Absence of a minus sign before percentage in this column signifies price
increase.
Rev. Rul. 85-28, 1985-1 C.B. 173, 1985-11 I.R.B. 16.