REVENUE RULE 92-11

1992-1 C.B. 188, 1992-7 I.R.B. 12.

Internal Revenue Service Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: February 18, 1992

26 CFR 1.472-1: Last-in, first-out inventories.

LIFO; price indexes; department stores. The December 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, December 31, 1991.

The following price indexes for December 1991 were issued by the Bureau of Labor Statistics on January 16, 1992, 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, December 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 December 1990/December 1991/Percent Change from Dec. 1990 to Dec. 1991 [Fn1]
1. Piece Goods 474.4 479.9 1.2
2. Domestics and Draperies 604.5 616.1 1.9
3. Women's and Children's Shoes 607.5 621.7 2.3
4. Men's Shoes 864.3 892.7 3.3
5. Infants' Wear 599.8 613.6 2.3
6. Women's Underwear 494.8 507.1 2.5
7. Women's Hosiery 259.1 262.5 1.3
8. Women's and Girls' Accessories 545.8 559.9 2.6
9. Women's Outerwear and Girls' Wear 408.2 422.7 3.6
10. Men's Clothing 566.5 583.2 2.9
11. Men's Furnishings 548.1 565.7 3.2
12. Boys' Clothing and Furnishings 470.4 483.2 2.7
13. Jewelry 852.5 874.7 2.6
14. Notions 554.0 614.2 10.9
15. Toilet Articles and Drugs 777.9 796.6 2.4
16. Furniture and Bedding 586.4 586.0 -0.1
17. Floor Coverings 544.7 521.1 -4.3
18. Housewares 742.8 756.8 1.9
19. Major Appliances 245.4 242.9 -1.0
20. Radio and Television 89.7 88.9 -0.9
21. Recreation and Education [fn2] 111.8 114.4 2.3
22. Home Improvements [fn2] 113.5 118.2 4.1
23. Auto Accessories [fn2] 107.4 108.4 0.9
Groups 1 - 15: Soft Goods 558.0 573.8 2.8
Groups 16 - 20: Durable Goods 451.8 452.6 0.2
Groups 21 - 23: Misc. Goods [fn2] 111.2 113.8 2.3
Store Total [fn3] 523.9 535.1 2.1

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. 92-11, 1992-1 C.B. 188, 1992-7 I.R.B. 12.