REVENUE RULE 91-2

1991-1 C.B. 65, 1991-3 I.R.B. 8.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: January 22, 1991

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

LIFO; price indexes; department stores. The October 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, October 31, 1990.

The following price indexes for October 1990 were issued by the Bureau of Labor Statistics on November 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, October 31, 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 October 1989/October 1990/Percent Change from Oct. 1989 to Oct. 1990 [Fn1]
1. Piece Goods 412.2 468.1 13.6
2. Domestics and Draperies 603.5 620.2 2.8
3. Women's and Children's Shoes 602.7 621.9 3.2
4. Men's Shoes 838.5 860.6 2.6
5. Infants' Wear 570.9 599.0 4.9
6. Women's Underwear 477.3 494.9 3.7
7. Women's Hosiery 246.3 255.3 3.7
8. Women's and Girls' Accessories 534.1 544.8 2.0
9. Women's Outerwear and Girls' Wear 407.7 424.4 4.1
10. Men's Clothing 559.4 575.8 2.9
11. Men's Furnishings 537.2 551.1 2.6
12. Boys' Clothing and Furnishings 469.9 470.9 0.2
13. Jewelry 816.9 879.7 7.7
14. Notions 539.3 556.8 3.2
15. Toilet Articles and Drugs 742.7 773.4 4.1
16. Furniture and Bedding 587.2 591.8 0.8
17. Floor Coverings 508.5 537.7 5.7
18. Housewares 732.2 746.4 1.9
19. Major Appliances 245.5 247.2 0.7
20. Radio and Television 92.2 90.9 -1.4
21. Recreation and Education [fn2] 108.9 112.4 3.2
22. Home Improvements [fn2] 110.5 113.5 2.7
23. Auto Accessories [fn2] 105.1 105.6 0.5
Groups 1 - 15: Soft Goods 547.7 567.4 3.6
Groups 16 - 20: Durable Goods 450.0 454.8 1.1
Groups 21 - 23: Misc. Goods [fn2] 108.4 111.2 2.6
Store Total [fn3] 515.3 529.9 2.8

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. 91-2, 1991-1 C.B. 65, 1991-3 I.R.B. 8.