REVENUE RULE 92-58

1992-2 C.B. 104, 1992-30 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: July 27, 1992

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

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

The following price indexes for May 1992 were issued by the Bureau of Labor Statistics on June 12, 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, May 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 May 1991/May 1992/Percent Change from May 1991 to May 1992 [Fn1]
1. Piece Goods 462.3 453.9 -1.8
2. Domestics and Draperies 628.7 634.7 1.0
3. Women's and Children's Shoes 621.5 643.9 3.6
4. Men's Shoes 888.6 922.9 3.9
5. Infants' Wear 609.7 620.1 1.7
6. Women's Underwear 497.2 515.5 3.7
7. Women's Hosiery 261.0 272.7 4.5
8. Women's and Girls' Accessories 546.8 564.2 3.2
9. Women's Outerwear and Girls' Wear 424.5 438.5 3.3
10. Men's Clothing 595.1 590.5 -0.8
11. Men's Furnishings 566.1 576.4 1.8
12. Boys' Clothing and Furnishings 468.7 482.1 2.9
13. Jewelry 887.7 917.1 3.3
14. Notions 563.8 616.2 9.3
15. Toilet Articles and Drugs 795.4 810.5 1.9
16. Furniture and Bedding 601.3 611.4 1.7
17. Floor Coverings 543.7 526.8 -3.1
18. Housewares 758.3 768.2 1.3
19. Major Appliances 247.0 247.3 0.1
20. Radio and Television 90.3 89.1 -1.3
21. Recreation and Education [fn2] 113.4 115.1 1.5
22. Home Improvements [fn2] 116.7 115.8 -0.8
23. Auto Accessories [fn2] 107.5 108.4 0.8
Groups 1 - 15: Soft Goods 574.9 588.8 2.4
Groups 16 - 20: Durable Goods 458.6 460.5 0.4
Groups 21 - 23: Misc. Goods [fn2] 112.8 113.8 0.9
Store Total [fn3] 536.4 545.4 1.7

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. 92-58, 1992-2 C.B. 104, 1992-30 I.R.B. 4.