REVENUE RULE 92-10

1992-1 C.B. 187, 1992-7 I.R.B. 11.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: February 18, 1992

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

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

The following price indexes for November 1991 were issued by the Bureau of Labor Statistics on December 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, November 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 November 1990/November 1991/Percent Change from Nov. 1990 to Nov. 1991 [Fn1]
1. Piece Goods 482.6 481.7 -0.2
2. Domestics and Draperies 613.7 617.0 0.5
3. Women's and Children's Shoes 617.0 626.3 1.5
4. Men's Shoes 862.8 909.4 5.4
5. Infants' Wear 595.8 615.8 3.4
6. Women's Underwear 498.2 510.8 2.5
7. Women's Hosiery 259.4 261.7 0.9
8. Women's and Girls' Accessories 547.7 563.8 2.9
9. Women's Outerwear and Girls' Wear 418.7 437.9 4.6
10. Men's Clothing 578.5 594.8 2.8
11. Men's Furnishings 554.8 572.6 3.2
12. Boys' Clothing and Furnishings 464.0 487.5 5.1
13. Jewelry 880.2 915.3 4.0
14. Notions 552.3 608.0 10.1
15. Toilet Articles and Drugs 776.4 799.4 3.0
16. Furniture and Bedding 586.3 587.2 0.2
17. Floor Coverings 540.9 528.7 -2.3
18. Housewares 743.3 763.0 2.7
19. Major Appliances 247.3 244.6 -1.1
20. Radio and Television 91.2 89.1 -2.3
21. Recreation and Education [fn2] 112.2 114.9 2.4
22. Home Improvements [fn2] 113.7 117.6 3.4
23. Auto Accessories [fn2] 107.0 107.9 0.8
Groups 1 - 15: Soft Goods 565.5 583.7 3.2
Groups 16 - 20: Durable Goods 453.8 455.4 0.4
Groups 21 - 23: Misc. Goods [fn2] 111.4 113.9 2.2
Store Total [fn3] 528.8 541.3 2.4

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).

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.

Rev. Rul. 92-10, 1992-1 C.B. 187, 1992-7 I.R.B. 11.