REVENUE RULE 91-13

1991-1 C.B. 67, 1991-8 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: February 25, 1991

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

LIFO; price indexes; department stores. The November 1990 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, 1990.

The following price indexes for November 1990 were issued by the Bureau of Labor Statistics on December 20, 1990, 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, November 30, 1990.

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)

Groups November 1989/November 1990/Percent Change from Nov. 1989 to Nov. 1990 [Fn1]
1. Piece Goods 415.9 482.6 16.0
2. Domestics and Draperies 603.0 613.7 1.8
3. Women's and Children's Shoes 596.2 617.0 3.5
4. Men's Shoes 839.3 862.8 2.8
5. Infants' Wear 565.7 595.8 5.3
6. Women's Underwear 481.8 498.2 3.4
7. Women's Hosiery 249.0 259.4 4.2
8. Women's and Girls' Accessories 536.5 547.7 2.1
9. Women's Outerwear and Girls' Wear 401.9 418.7 4.2
10. Men's Clothing 561.4 578.5 3.0
11. Men's Furnishings 544.6 554.8 1.9
12. Boys' Clothing and Furnishings 466.9 464.0 -0.6
13. Jewelry 820.1 880.2 7.3
14. Notions 541.3 552.3 2.0
15. Toilet Articles and Drugs 748.2 776.4 3.8
16. Furniture and Bedding 580.0 586.3 1.1
17. Floor Coverings 512.4 540.9 5.6
18. Housewares 736.3 743.3 1.0
19. Major Appliances 246.9 247.3 0.2
20. Radio and Television 93.2 91.2 -2.1
21. Recreation and Education [fn2] 109.2 112.2 2.7
22. Home Improvements [fn2] 111.3 113.7 2.2
23. Auto Accessories [fn2] 105.3 107.0 1.6
Groups 1 - 15: Soft Goods 547.1 565.5 3.4
Groups 16 - 20: Durable Goods 451.7 453.8 0.5
Groups 21 - 23: Misc. Goods [fn2] 108.7 111.4 2.5
Store Total [fn3] 515.8 528.8 2.5

FN1. Absence of a minus sign before percentage change in this column signifies price increase.
FN2. Indexes on a January 1986 = 100 base.
FN3. The store total index covers all departments, with the following exceptions: Candy, foods, liquor, tobacco, as well as contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Harry-Todd Astrov of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Astrov on (202) 566-3896 (not a toll-free call).

Rev. Rul. 91-13, 1991-1 C.B. 67, 1991-8 I.R.B. 4.