REVENUE RULE 92-71

1992-2 C.B. 105, 1992-37 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: September 14, 1992

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

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

The following price indexes for June 1992 were issued by the Bureau of Labor Statistics on July 14, 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, June 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 June 1991/June 1992/Percent Change from June 1991 to June 1992 [Fn1]
1. Piece Goods 458.5 456.9 -0.3
2. Domestics and Draperies 615.0 627.3 2.0
3. Women's and Children's Shoes 611.0 640.8 4.9
4. Men's Shoes 884.0 912.4 3.2
5. Infants' Wear 611.1 617.7 1.1
6. Women's Underwear 494.8 508.4 2.7
7. Women's Hosiery 261.5 269.8 3.2
8. Women's and Girls' Accessories 540.9 566.5 4.7
9. Women's Outerwear and Girls' Wear 411.2 422.4 2.7
10. Men's Clothing 580.0 585.8 1.0
11. Men's Furnishings 559.8 570.2 1.9
12. Boys' Clothing and Furnishings 463.5 473.1 2.1
13. Jewelry 861.3 918.9 6.7
14. Notions 557.0 619.7 11.3
15. Toilet Articles and Drugs 791.9 810.0 2.3
16. Furniture and Bedding 599.4 613.0 2.3
17. Floor Coverings 534.9 538.5 0.7
18. Housewares 750.0 765.4 2.1
19. Major Appliances 247.7 246.2 -0.6
20. Radio and Television 89.9 88.5 -1.6
21. Recreation and Education [fn2] 113.6 114.8 1.1
22. Home Improvements [fn2] 115.6 115.8 0.2
23. Auto Accessories [fn2] 107.3 108.1 0.7
Groups 1 - 15: Soft Goods 564.6 580.6 2.8
Groups 16 - 20: Durable Goods 455.8 459.7 0.9
Groups 21 - 23: Misc. Goods [fn2] 112.6 113.6 0.9
Store Total [fn3] 529.9 540.5 2.0

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) 622-4970 (not a toll-free call).

Rev. Rul. 92-71, 1992-2 C.B. 105, 1992-37 I.R.B. 4.