REVENUE RULE 91-43

1991-2 C.B. 323, 1991-31 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: August 5, 1991

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

LIFO; price indexes; department stores. The May 1991 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory method for valuing inventories for tax years ended on, or with reference to, May 31, 1991. [Full text in this issue.]

The following price indexes for May 1991 were issued by the Bureau of Labor Statistics on June 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, May 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 May 1990/May 1991/Percent Change from May 1990 to May 1992 [Fn1]
1. Piece Goods 440.3 462.3 5.0
2. Domestics and Draperies 610.7 628.7 2.9
3. Women's and Children's Shoes 607.2 721.5 2.4
4. Men's Shoes 860.1 888.6 3.3
5. Infants' Wear 599.3 609.7 1.7
6. Women's Underwear 480.9 497.2 3.4
7. Women's Hosiery 251.0 261.0 4.0
8. Women's and Girls' Accessories 535.3 546.8 2.1
9. Women's Outerwear and Girls' Wear 411.4 424.5 3.2
10. Men's Clothing 564.0 595.1 5.5
11. Men's Furnishings 554.2 566.1 2.1
12. Boys' Clothing and Furnishings 455.4 468.7 2.9
13. Jewelry 861.5 887.7 3.0
14. Notions 549.1 563.8 2.7
15. Toilet Articles and Drugs 765.3 795.4 3.9
16. Furniture and Bedding 592.9 601.3 1.4
17. Floor Coverings 521.8 543.7 4.2
18. Housewares 745.8 758.3 1.7
19. Major Appliances 244.6 247.0 1.0
20. Radio and Television 92.0 90.3 -1.8
21. Recreation and Education [fn2] 111.8 113.4 1.4
22. Home Improvements [fn2] 110.5 116.7 5.6
23. Auto Accessories [fn2] 105.4 107.5 2.0
Groups 1 - 15: Soft Goods 557.7 574.9 3.1
Groups 16 - 20: Durable Goods 454.4 458.6 1.0
Groups 21 - 23: Misc. Goods [fn2] 110.3 112.8 2.3
Store Total [fn3] 523.6 536.4 2.4

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. 91-43, 1991-2 C.B. 323, 1991-31 I.R.B. 5.