Rev. Rul. 85-54

1985-1 C.B. 174, 1985-17 I.R.B. 6.

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 29, 1985

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

  LIFO; price indexes; department stores. The December 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, December 31, 1984.

  The following price indexes for December 1984 were issued by the Bureau of Labor Statistics on January 25, 1985, 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, December 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 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
                                                                     December
                                         December      December         1983 to
                                           1983          1984        December
                                                                    1984 [FN1]
-------------------------------------------------------------------------------
      I.  Piece Goods ....................... 394.1         399.1           1.3
     II.  Domestics and Draperies ........... 523.0         546.0           4.4
    III.  Women's and Children's
          Shoes ............................. 545.0         553.5           1.6
     IV.  Men's and Boys' Shoes ............. 686.1         704.8           2.7
      V.  Infants' Wear ..................... 473.8         483.8           2.1
     VI.  Women's Underwear ................. 421.0         425.3           1.0
    VII.  Women's and Girls'
          Hosiery ........................... 232.1         235.1           1.3
   VIII.  Women's and Girls'
          Accessories ....................... 426.5         450.0           5.5
     IX.  Women's Outerwear and
          Girls' Wear ....................... 339.1         343.0           1.1
      X.  Men's Clothing .................... 460.6         467.6           1.5
     XI.  Men's Furnishings ................. 462.0         472.1           2.2
    XII.  Boys' Clothing and
          Furnishings ....................... 429.2         443.6           3.4
   XIII.  Jewelry ........................... 692.6         677.9          -2.1
    XIV.  Notions ........................... 466.6         485.7           4.1
     XV.  Toilet Articles and Drugs ......... 610.0         625.9           2.6
    XVI.  Furniture and Bedding ............. 521.3         530.2           1.7
   XVII.  Floor Coverings ................... 453.5         459.6           1.3
  XVIII.  Housewares ........................ 723.8         707.4          -2.3
    XIX.  Major Appliances .................. 241.4         240.6          - .3
     XX.  Radio and Television .............. 113.7         107.2          -5.7
          Groups I-XV: Soft Goods ........... 464.0         473.8           2.1
          Groups XVI-XX: Durable
          Goods ............................. 445.8         442.2          - .8
          Store Total ....................... 458.6         464.7           1.3
FN1. Absence of a minus sign before percentage change in this column signifies
  price increase.

Rev. Rul. 85-54, 1985-1 C.B. 174, 1985-17 I.R.B. 6.