REVENUE RULE 93-57

1993-2 C.B. 231, 1993-28 I.R.B. 45.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: September 7, 1993

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

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

The following Department Store Inventory Price Indexes for June 1993 were issued by the Bureau of Labor Statistics on July 14, 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, June 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 June 1992/June 1993/Percent Change from June 1992 to June 1993 [Fn1]
1. Piece Goods 456.9 471.8 3.3
2. Domestics and Draperies 627.3 627.1 0.0
3. Women's and Children's Shoes 640.8 645.9 0.8
4. Men's Shoes 912.4 902.4 -1.1
5. Infants' Wear 617.7 610.7 -1.1
6. Women's Underwear 508.4 511.4 0.6
7. Women's Hosiery 269.8 268.2 -0.6
8. Women's and Girls' Accessories 566.5 575.1 1.5
9. Women's Outerwear and Girls' Wear 422.4 423.2 0.2
10. Men's Clothing 585.8 593.9 1.4
11. Men's Furnishings 570.2 559.7 -1.8
12. Boys' Clothing and Furnishings 473.1 489.6 3.5
13. Jewelry 918.9 959.7 4.4
14. Notions 619.7 601.4 -3.0
15. Toilet Articles and Drugs 810.0 834.3 3.0
16. Furniture and Bedding 613.0 621.1 1.3
17. Floor Coverings 538.5 533.1 -1.0
18. Housewares 765.4 768.0 0.3
19. Major Appliances 246.2 248.3 0.9
20. Radio and Television 88.5 86.3 -2.5
21. Recreation and Education [fn2] 114.8 114.5 -0.3
22. Home Improvements [fn2] 115.8 119.6 3.3
23. Auto Accessories [fn2] 108.1 105.7 -2.2
Groups 1 - 15: Soft Goods 580.6 584.4 0.7
Groups 16 - 20: Durable Goods 459.7 459.7 0.0
Groups 21 - 23: Misc. Goods [fn2] 113.6 113.5 -0.1
Store Total [fn3] 540.5 542.5 0.4

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. 93-57, 1993-2 C.B. 231, 1993-28 I.R.B. 45.