REVENUE RULE 92-24

1992-1 C.B. 189, 1992-14 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 6, 1992

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

LIFO; price indexes; department stores. The January 1992 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, January 31, 1992.

The following price indexes for January 1992 were issued by the Bureau of Labor Statistics on February 19, 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, January 31, 1992.

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 January 1991/January 1992/Percent Change from Jan. 1991 to Jan. 1992 [Fn1]
1. Piece Goods 467.6 469.4 0.4
2. Domestics and Draperies 606.9 620.2 2.2
3. Women's and Children's Shoes 598.3 613.0 2.5
4. Men's Shoes 864.7 899.6 4.0
5. Infants' Wear 595.2 603.9 1.5
6. Women's Underwear 490.6 500.9 2.1
7. Women's Hosiery 258.3 267.1 3.4
8. Women's and Girls' Accessories 540.7 560.8 3.7
9. Women's Outerwear and Girls' Wear 394.5 412.2 4.5
10. Men's Clothing 555.8 572.8 3.1
11. Men's Furnishings 542.9 557.3 2.7
12. Boys' Clothing and Furnishings 460.8 473.5 2.8
13. Jewelry 880.1 907.1 3.1
14. Notions 554.0 603.2 8.9
15. Toilet Articles and Drugs 779.8 797.9 2.3
16. Furniture and Bedding 589.7 592.4 0.5
17. Floor Coverings 545.1 528.4 -3.1
18. Housewares 747.5 764.8 2.3
19. Major Appliances 246.8 244.1 -1.1
20. Radio and Television 89.6 88.9 -0.8
21. Recreation and Education [fn2] 112.2 114.1 1.7
22. Home Improvements [fn2] 114.4 119.5 4.5
23. Auto Accessories [fn2] 107.5 108.5 0.9
Groups 1 - 15: Soft Goods 552.5 569.4 3.1
Groups 16 - 20: Durable Goods 453.8 456.1 0.5
Groups 21 - 23: Misc. Goods [fn2] 111.6 113.8 2.0
Store Total [fn3] 521.8 533.7 2.3

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. 92-24, 1992-1 C.B. 189, 1992-14 I.R.B. 4.