REVENUE RULE 91-28

1991-1 C.B. 70, 1991-17 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 29, 1991

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

LIFO; price indexes; department stores. The February 1991 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, February 28, 1991. [

The following price indexes for February 1991 were issued by the Bureau of Labor Statistics on March 19, 1991, 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, February 28, 1991.

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 February 1990/February 1991/Percent Change from Feb. 1990 to Feb. 1991 [Fn1]
1. Piece Goods 459.2 468.8 2.1
2. Domestics and Draperies 614.3 616.5 0.4
3. Women's and Children's Shoes 580.4 601.6 3.7
4. Men's Shoes 841.6 873.2 3.8
5. Infants' Wear 587.8 596.7 1.5
6. Women's Underwear 472.7 496.7 5.1
7. Women's Hosiery 251.6 258.8 2.9
8. Women's and Girls' Accessories 525.4 537.2 2.2
9. Women's Outerwear and Girls' Wear 384.8 409.7 6.5
10. Men's Clothing 546.4 567.7 3.9
11. Men's Furnishings 532.0 543.6 2.2
12. Boys' Clothing and Furnishings 434.0 460.3 6.1
13. Jewelry 843.4 881.4 4.5
14. Notions 555.6 558.2 0.5
15. Toilet Articles and Drugs 750.5 787.3 4.9
16. Furniture and Bedding 584.9 592.6 1.3
17. Floor Coverings 514.2 540.6 5.1
18. Housewares 742.8 751.7 1.2
19. Major Appliances 245.5 246.7 0.5
20. Radio and Television 92.9 91.9 -1.9
21. Recreation and Education [fn2] 110.3 113.3 2.7
22. Home Improvements [fn2] 109.8 114.8 4.6
23. Auto Accessories [fn2] 105.8 107.5 1.6
Groups 1 - 15: Soft Goods 539.6 560.3 3.8
Groups 16 - 20: Durable Goods 453.3 456.4 0.7
Groups 21 - 23: Misc. Goods [fn2] 109.3 112.3 2.7
Store Total [fn3] 512.7 527.5 2.9

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) 566-5155 (not a toll-free call).

Rev. Rul. 91-28, 1991-1 C.B. 70, 1991-17 I.R.B. 4.