REVENUE RULE 91-40

1991-2 C.B. 322, 1991-27 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: July 8, 1991

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

LIFO; price indexes; department stores. The April 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, April 30, 1991.

The following price indexes for April 1991 were issued by the Bureau of Labor Statistics on May 14, 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, April 30, 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 April 1990/April 1991/Percent Change from April 1990 to April 1991 [Fn1]
1. Piece Goods 457.1 461.1 0.9
2. Domestics and Draperies 607.7 622.6 2.5
3. Women's and Children's Shoes 604.8 626.3 3.6
4. Men's Shoes 860.8 879.2 2.1
5. Infants' Wear 608.2 610.2 0.3
6. Women's Underwear 482.6 497.7 3.1
7. Women's Hosiery 252.7 260.4 3.0
8. Women's and Girls' Accessories 532.2 550.6 3.5
9. Women's Outerwear and Girls' Wear 422.8 431.1 2.0
10. Men's Clothing 564.4 589.2 4.4
11. Men's Furnishings 549.4 558.7 1.7
12. Boys' Clothing and Furnishings 451.7 479.5 6.2
13. Jewelry 865.0 895.0 3.5
14. Notions 550.0 552.3 0.4
15. Toilet Articles and Drugs 764.2 796.8 4.3
16. Furniture and Bedding 595.7 592.7 -0.5
17. Floor Coverings 513.1 537.3 4.7
18. Housewares 743.5 754.9 1.5
19. Major Appliances 244.8 246.1 0.5
20. Radio and Television 92.1 90.0 -2.3
21. Recreation and Education [fn2] 111.3 113.7 2.2
22. Home Improvements [fn2] 109.6 115.6 5.5
23. Auto Accessories [fn2] 105.4 107.0 1.5
Groups 1 - 15: Soft Goods 560.6 576.1 2.8
Groups 16 - 20: Durable Goods 453.7 455.8 0.5
Groups 21 - 23: Misc. Goods [fn2] 109.8 112.7 2.6
Store Total [fn3] 524.6 536.2 2.2

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. 91-40, 1991-2 C.B. 322, 1991-27 I.R.B. 5.