REVENUE RULE 93-47

1993-2 C.B. 229, 1993-25 I.R.B. 6.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: July 19, 1993

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

LIFO; price indexes; department stores. The April 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, April 30, 1993.

The following Department Store Inventory Price Indexes for April 1993 were issued by the Bureau of Labor Statistics on May 13, 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 CB 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, 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 April 1992/April 1993/Percent Change from April 1992 to April 1993 [Fn1]
1. Piece Goods 454.4 464.8 2.3
2. Domestics and Draperies 631.2 628.2 -0.5
3. Women's and Children's Shoes 644.8 653.5 1.3
4. Men's Shoes 913.0 912.1 -0.1
5. Infants' Wear 626.1 605.2 -3.3
6. Women's Underwear 515.4 522.1 1.3
7. Women's Hosiery 270.8 270.4 -0.1
8. Women's and Girls' Accessories 560.5 588.2 4.9
9. Women's Outerwear and Girls' Wear 440.7 458.5 4.0
10. Men's Clothing 592.8 601.2 1.4
11. Men's Furnishings 570.8 578.7 1.4
12. Boys' Clothing and Furnishings 494.4 488.4 -1.2
13. Jewelry 921.3 972.3 5.5
14. Notions 616.2 573.7 -6.9
15. Toilet Articles and Drugs 815.7 827.1 1.4
16. Furniture and Bedding 619.0 615.1 -0.6
17. Floor Coverings 525.2 532.1 1.3
18. Housewares 764.9 765.5 0.1
19. Major Appliances 248.1 249.4 0.5
20. Radio and Television 88.5 87.4 -1.2
21. Recreation and Education [fn2] 115.1 115.0 -0.1
22. Home Improvements [fn2] 117.6 126.1 7.2
23. Auto Accessories [fn2] 108.1 107.0 -1.0
Groups 1 - 15: Soft Goods 589.5 600.0 1.8
Groups 16 - 20: Durable Goods 460.3 459.7 -0.1
Groups 21 - 23: Misc. Goods [fn2] 114.1 115.2 1.0
Store Total [fn3] 546.0 552.5 1.2

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).