REVENUE RULE 91-34

1991-1 C.B. 71, 1991-21 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: May 28, 1991

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

LIFO; price indexes; department stores. The March 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, March 31, 1991. [Full text in this issue.]

The following price indexes for March 1991 were issued by the Bureau of Labor Statistics on April 12, 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, March 31, 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 March 1990/March 1991/Percent Change from March 1990 to March 1991 [Fn1]
1. Piece Goods 454.4 461.2 1.5
2. Domestics and Draperies 614.7 621.1 1.0
3. Women's and Children's Shoes 593.6 616.3 3.8
4. Men's Shoes 854.2 879.6 3.0
5. Infants' Wear 600.3 606.8 1.1
6. Women's Underwear 478.3 503.5 5.3
7. Women's Hosiery 252.3 259.5 2.9
8. Women's and Girls' Accessories 527.9 544.3 3.1
9. Women's Outerwear and Girls' Wear 418.2 425.6 1.8
10. Men's Clothing 557.1 581.5 4.4
11. Men's Furnishings 542.1 551.1 1.7
12. Boys' Clothing and Furnishings 443.6 468.5 5.6
13. Jewelry 857.4 878.6 2.5
14. Notions 557.8 549.8 -1.4
15. Toilet Articles and Drugs 754.9 789.0 4.5
16. Furniture and Bedding 592.7 589.0 -0.6
17. Floor Coverings 512.1 534.4 4.4
18. Housewares 740.6 753.8 1.8
19. Major Appliances 243.3 245.8 1.0
20. Radio and Television 92.4 91.2 -1.3
21. Recreation and Education [fn2] 111.0 113.3 2.1
22. Home Improvements [fn2] 110.4 114.9 4.1
23. Auto Accessories [fn2] 105.4 106.9 1.4
Groups 1 - 15: Soft Goods 555.6 570.1 2.6
Groups 16 - 20: Durable Goods 452.4 456.0 0.8
Groups 21 - 23: Misc. Goods [fn2] 109.8 112.3 2.3
Store Total [fn3] 521.5 532.6 2.1

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).

1991-1 C.B. 71, 1991-21 I.R.B. 4.