REVENUE RULE 93-33

1993-1 C.B. 86, 1993-18 I.R.B. 6.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: May 3, 1993

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

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

The following price indexes for November 1992 were issued by the Bureau of Labor Statistics on December 11, 1992, for use by department stores. The indexes are accepted by the Internal Revenue Service, under § 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, November 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 November 1991/November 1992/Percent Change from Nov. 1991 to Nov. 1992 [Fn1]
1. Piece Goods 481.7 488.8 1.5
2. Domestics and Draperies 617.0 617.0 0.0
3. Women's and Children's Shoes 626.3 643.6 2.8
4. Men's Shoes 909.4 917.9 0.9
5. Infants' Wear 615.8 624.1 1.3
6. Women's Underwear 510.8 516.6 1.1
7. Women's Hosiery 261.7 271.4 3.7
8. Women's and Girls' Accessories 563.8 590.5 4.7
9. Women's Outerwear and Girls' Wear 437.9 437.7 0.0
10. Men's Clothing 594.8 604.6 1.6
11. Men's Furnishings 572.6 576.8 0.7
12. Boys' Clothing and Furnishings 487.5 487.8 0.1
13. Jewelry 915.3 919.6 0.5
14. Notions 608.0 609.3 0.2
15. Toilet Articles and Drugs 799.4 816.5 2.1
16. Furniture and Bedding 587.2 613.8 4.5
17. Floor Coverings 528.7 530.6 0.4
18. Housewares 763.0 768.4 0.7
19. Major Appliances 244.6 247.2 1.1
20. Radio and Television 89.1 88.0 -1.2
21. Recreation and Education [fn2] 114.9 115.9 0.9
22. Home Improvements [fn2] 117.6 119.1 1.3
23. Auto Accessories [fn2] 107.9 107.8 -0.1
Groups 1 - 15: Soft Goods 583.7 589.3 1.0
Groups 16 - 20: Durable Goods 455.4 460.0 1.0
Groups 21 - 23: Misc. Goods [fn2] 113.9 114.8 0.8
Store Total [fn3] 541.3 546.4 0.9

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 Stan Michaels of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Michaels on (202) 622- 4970 (not a toll-free call).