REVENUE RULE 93-41

1993-1 C.B. 89, 1993-23 I.R.B. 8.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: June 14, 1993

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

LIFO; price indexes; department stores. The February 1993 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, February 28, 1993.

The following Department Store Inventory Price Indexes for February 1993 were issued by the Bureau of Labor Statistics on March 17, 1993. 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, February 28, 1993.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups--soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100, unless otherwise noted)

Groups February 1992/February 1993/Percent Change from Feb. 1992 to Feb. 1993 [Fn1]
1. Piece Goods 468.1 463.0 -1.1
2. Domestics and Draperies 625.2 622.3 -0.5
3. Women's and Children's Shoes 620.7 638.8 2.9
4. Men's Shoes 903.2 911.3 0.9
5. Infants' Wear 603.9 606.9 0.5
6. Women's Underwear 508.9 510.2 0.3
7. Women's Hosiery 266.1 270.3 1.6
8. Women's and Girls' Accessories 556.8 571.4 2.6
9. Women's Outerwear and Girls' Wear 423.7 431.5 1.8
10. Men's Clothing 582.6 596.4 2.4
11. Men's Furnishings 567.0 560.9 -1.1
12. Boys' Clothing and Furnishings 478.1 487.1 1.9
13. Jewelry 922.7 952.1 3.2
14. Notions 601.1 602.2 0.2
15. Toilet Articles and Drugs 807.1 818.4 1.4
16. Furniture and Bedding 599.9 606.8 1.2
17. Floor Coverings 529.2 539.0 1.9
18. Housewares 768.0 759.7 -1.1
19. Major Appliances 247.0 248.9 0.8
20. Radio and Television 89.2 87.7 -1.7
21. Recreation and Education [fn2] 114.4 115.1 0.6
22. Home Improvements [fn2] 118.4 120.1 1.4
23. Auto Accessories [fn2] 108.2 107.5 -0.6
Groups 1 - 15: Soft Goods 577.9 584.7 1.2
Groups 16 - 20: Durable Goods 459.1 457.6 -0.3
Groups 21 - 23: Misc. Goods [fn2] 113.8 114.4 0.5
Store Total [fn3] 539.0 542.9 0.7

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, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and 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).

Rev. Rul. 93-41, 1993-1 C.B. 89, 1993-23 I.R.B. 8.