REVENUE RULE 91-60

1991-2 C.B. 326, 1991-45 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: November 12, 1991

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

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

The following price indexes for August 1991 were issued by the Bureau of Labor Statistics on September 13, 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, August 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 August 1990/August 1991/Percent Change from Aug. 1990 to Aug. 1991 [Fn1]
1. Piece Goods 448.2 472.8 5.5
2. Domestics and Draperies 607.6 622.7 2.5
3. Women's and Children's Shoes 593.5 609.5 2.7
4. Men's Shoes 858.2 887.3 3.4
5. Infants' Wear 595.7 607.3 1.9
6. Women's Underwear 488.9 491.8 0.6
7. Women's Hosiery 251.8 262.1 4.1
8. Women's and Girls' Accessories 534.5 546.4 2.2
9. Women's Outerwear and Girls' Wear 387.6 413.4 6.7
10. Men's Clothing 562.7 584.4 3.9
11. Men's Furnishings 531.1 548.4 3.3
12. Boys' Clothing and Furnishings 444.3 458.0 3.1
13. Jewelry 853.4 881.7 3.3
14. Notions 549.3 560.6 2.1
15. Toilet Articles and Drugs 764.2 798.0 4.4
16. Furniture and Bedding 586.8 590.6 0.6
17. Floor Coverings 528.6 540.2 2.2
18. Housewares 744.5 758.1 1.8
19. Major Appliances 247.2 247.7 0.2
20. Radio and Television 90.3 88.8 -1.7
21. Recreation and Education [fn2] 112.5 114.0 1.3
22. Home Improvements [fn2] 114.1 118.2 3.6
23. Auto Accessories [fn2] 106.2 108.0 1.7
Groups 1 - 15: Soft Goods 545.1 566.0 3.8
Groups 16 - 20: Durable Goods 452.7 455.8 0.7
Groups 21 - 23: Misc. Goods [fn2] 111.5 113.5 1.8
Store Total [fn3] 517.5 531.5 2.7

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. 91-60, 1991-2 C.B. 326, 1991-45 I.R.B. 5.