REVENUE RULE 92-55

1992-2 C.B. 103, 1992-27 I.R.B. 9.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: July 6, 1992

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

LIFO; price indexes; department stores. The April 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, April 30, 1992.

The following price indexes for April 1992 were issued by the Bureau of Labor Statistics on May 13, 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, April 30, 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 April 1991/April 1992/Percent Change from April 1991 to April 1992 [Fn1]
1. Piece Goods 461.1 454.4 -1.5
2. Domestics and Draperies 622.6 631.2 1.4
3. Women's and Children's Shoes 626.3 644.8 3.0
4. Men's Shoes 879.2 913.0 3.8
5. Infants' Wear 610.2 626.1 2.6
6. Women's Underwear 497.7 515.4 3.6
7. Women's Hosiery 260.4 270.8 4.0
8. Women's and Girls' Accessories 550.6 560.5 1.8
9. Women's Outerwear and Girls' Wear 431.1 440.7 2.2
10. Men's Clothing 589.2 592.8 0.6
11. Men's Furnishings 558.7 570.8 2.2
12. Boys' Clothing and Furnishings 479.5 494.4 3.1
13. Jewelry 895.0 921.3 2.9
14. Notions 552.3 616.2 11.6
15. Toilet Articles and Drugs 796.8 815.7 2.4
16. Furniture and Bedding 592.7 619.0 4.4
17. Floor Coverings 537.3 525.2 -2.3
18. Housewares 754.9 764.9 1.3
19. Major Appliances 246.1 248.1 0.8
20. Radio and Television 90.0 88.5 -1.7
21. Recreation and Education [fn2] 113.7 115.1 1.2
22. Home Improvements [fn2] 115.6 117.6 1.7
23. Auto Accessories [fn2] 107.0 108.1 1.0
Groups 1 - 15: Soft Goods 576.1 589.5 2.3
Groups 16 - 20: Durable Goods 455.8 460.3 1.0
Groups 21 - 23: Misc. Goods [fn2] 112.7 114.1 1.2
Store Total [fn3] 536.2 546.0 1.8

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. 92-55, 1992-2 C.B. 103, 1992-27 I.R.B. 9.