REVENUE RULE 91-49

1991-2 C.B. 324, 1991-35 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: September 3, 1991

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

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

The following price indexes for June 1991 were issued by the Bureau of Labor Statistics on July 17, 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, June 30, 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 June 1990/June 1991/Percent Change from June 1990 to June 1991 [Fn1]
1. Piece Goods 435.3 458.5 5.3
2. Domestics and Draperies 611.0 615.0 0.7
3. Women's and Children's Shoes 598.4 611.0 2.1
4. Men's Shoes 859.4 884.0 2.9
5. Infants' Wear 600.7 611.1 1.7
6. Women's Underwear 478.1 494.8 3.5
7. Women's Hosiery 253.5 261.5 3.2
8. Women's and Girls' Accessories 524.9 540.9 3.0
9. Women's Outerwear and Girls' Wear 398.8 411.2 3.1
10. Men's Clothing 556.4 580.0 4.2
11. Men's Furnishings 541.6 559.8 3.4
12. Boys' Clothing and Furnishings 456.2 463.5 1.6
13. Jewelry 857.4 861.3 0.5
14. Notions 555.3 557.0 0.3
15. Toilet Articles and Drugs 768.6 791.9 3.0
16. Furniture and Bedding 584.0 599.4 2.6
17. Floor Coverings 530.4 534.9 0.8
18. Housewares 744.6 750.0 0.7
19. Major Appliances 244.7 247.7 1.2
20. Radio and Television 91.4 89.9 -1.6
21. Recreation and Education [fn2] 112.2 113.6 1.2
22. Home Improvements [fn2] 112.0 115.6 3.2
23. Auto Accessories [fn2] 105.7 107.3 1.5
Groups 1 - 15: Soft Goods 550.8 564.6 2.5
Groups 16 - 20: Durable Goods 452.7 455.8 0.7
Groups 21 - 23: Misc. Goods [fn2] 110.8 112.6 1.6
Store Total [fn3] 520.0 529.9 1.9

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. 91-49, 1991-2 C.B. 324, 1991-35 I.R.B. 5.