Rev. Rul. 89-10
1989-1 C.B. 160, 1989-4 I.R.B. 4.
Internal Revenue Service
Revenue Ruling
LIFO; PRICE INDEXES, DEPARTMENT STORES
Published: January 23, 1989
SECTION 472. - LAST-IN, FIRST-OUT INVENTORIES, 26 CFR 1.472-1: Last-in, first- out inventories
LIFO; price indexes, department stores. The September 1988 Bureau if 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, September 30, 1988.
The following price indexes for September 1988 were issued by the Bureau of Labor Statistics on October 25, 1988, 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. 86-46, 1986-2 C.B. 739, 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, September 30, 1988.
Indexes are prepared on a national basis for the store total, for 23 major groups of departments, and for three special combinations -- soft goods, durable goods and miscellaneous goods. The store total index covers all departments, including some not listed separately, with the following exceptions: candy, foods, liquor, tobacco, as well as contract departments.
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY
DEPARTMENT GROUPS
(January 1941 = 100 unless otherwise noted)
-------------------------------------------------------------------------------
Percentage
Change
from September
1987 to
September
Groups September September 1988 [FN1]
1987 1988
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1. Piece Goods ...................... 380.6 414.6 8.9
2. Domestic and Draperies ........... 585.4 607.4 3.8
3. Women's and Children's Shoes ..... 548.4 574.6 4.8
4. Men's Shoes ...................... 758.7 818.4 7.9
5. Infants' Wear .................... 537.5 560.6 4.3
6. Women's Underwear ................ 436.3 460.7 5.6
7. Women's Hosiery [FN2] ............ 239.0 242.6 1.5
8. Women's and Girls' Accessories ... 468.0 496.7 6.1
9. Women's Outerwear and Girls'
Wear ........................... 384.1 391.9 2.0
10. Men's Clothing ................... 502.7 528.3 5.1
11. Men's Furnishings ................ 504.4 520.0 3.1
12. Boys' Clothing and Furnishings ... 432.2 451.8 4.5
13. Jewelry .......................... 734.9 779.6 6.1
14. Notions .......................... 489.7 498.6 1.8
15. Toilet Articles and Drugs ........ 683.9 709.2 3.7
16. Furniture and Bedding ............ 562.0 583.0 3.7
17. Floor Coverings .................. 483.6 493.7 2.1
18. Housewares ....................... 733.6 730.9 -0.4
19. Major Appliances ................. 250.5 251.9 0.6
20. Radio and Television ............. 96.6 94.6 -2.1
21. Recreation and Education [FN3] ... 102.0 106.9 4.8
22. Home Improvements [FN3] .......... 102.5 105.8 3.2
23. Auto Accessories [FN3] ........... 101.2 103.3 2.1
Groups 1-15: Soft Goods .......... 509.2 529.0 3.9
Groups 16-20: Durable Goods ...... 451.7 452.8 0.2
Groups 21-23: Misc. Goods
[FN3] .......................... 101.9 106.0 4.0
Store Total ...................... 489.1 503.8 3.0
FN1. Absence of a minus sign before percentage change in this column signifies
price increase.
FN2. Title reflects change in item sampling structure made during 1978 CPI
Revision whereby Girls' Hosiery was included in Group 8, Women's and Girl's
Accessories, not Group 7.
FN3. Indexes on a January 1986 = 100 base.
DRAFTING INFORMATION
The principal author of this revenue ruling is Kevin M. Curran of the Office of the Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Curran on (202) 566-3024 (not a toll-free call).
Rev. Rul. 89-10, 1989-1 C.B. 160, 1989-4 I.R.B. 4.