REVENUE RULE 93-52

1993-2 C.B. 230, 1993-26 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: August 2, 1993

§ 472. Last-in, First-out Inventories, 26 CFR 1.4720-1: Last-in, first- out inventories.

LIFO; price indexes; department stores. The May 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, May 31, 1993.

The following Department Store Inventory Price Indexes for May 1993 were issued by the Bureau of Labor Statistics on June 15, 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, May 31, 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 May 1992/May 1993/Percent Change from May 1992 to May 1993 [Fn1]
1. Piece Goods 453.9 453.7 0.0
2. Domestics and Draperies 634.7 629.9 -0.8
3. Women's and Children's Shoes 643.9 655.3 1.8
4. Men's Shoes 922.9 918.1 -0.5
5. Infants' Wear 620.1 611.1 -1.5
6. Women's Underwear 515.5 514.1 -0.3
7. Women's Hosiery 272.7 267.6 -1.9
8. Women's and Girls' Accessories 564.2 586.4 3.9
9. Women's Outerwear and Girls' Wear 438.5 443.6 1.2
10. Men's Clothing 590.5 601.0 1.8
11. Men's Furnishings 576.4 574.2 -0.4
12. Boys' Clothing and Furnishings 482.1 492.2 2.1
13. Jewelry 917.1 956.6 4.3
14. Notions 616.2 602.9 -2.2
15. Toilet Articles and Drugs 810.5 831.2 2.6
16. Furniture and Bedding 611.4 615.9 0.7
17. Floor Coverings 526.8 528.9 0.4
18. Housewares 768.2 765.8 -0.3
19. Major Appliances 247.3 250.3 1.2
20. Radio and Television 89.1 86.5 2.9
21. Recreation and Education [fn2] 115.1 114.2 -0.8
22. Home Improvements [fn2] 115.8 123.5 6.6
23. Auto Accessories [fn2] 108.4 106.5 -1.8
Groups 1 - 15: Soft Goods 588.8 594.7 1.0
Groups 16 - 20: Durable Goods 460.5 459.1 -0.3
Groups 21 - 23: Misc. Goods [fn2] 113.8 114.2 0.4
Store Total [fn3] 545.4 548.5 0.6

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. 93-52, 1993-2 C.B. 230, 1993-26 I.R.B. 4.