REVENUE RULE 93-9

1993-1 C.B. 83, 1993-5 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: February 1, 1993

§ 472. Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The August 1992 Bureau of Labor Statistice 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, August 31, 1992.

The following price indexes for August 1992 were issued by the Bureau of Labor Statistics on September 15, 1992, for use by department stores, and 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, August 31, 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 August 1991/August 1992/Percent Change from Aug. 1991 to Aug. 1992 [Fn1]
1. Piece Goods 472.8 477.5 1.0
2. Domestics and Draperies 622.7 638.3 2.5
3. Women's and Children's Shoes 609.5 637.8 4.6
4. Men's Shoes 887.3 914.7 3.1
5. Infants' Wear 607.3 616.7 1.5
6. Women's Underwear 491.8 515.1 4.7
7. Women's Hosiery 262.1 270.1 3.1
8. Women's and Girls' Accessories 546.4 587.4 7.5
9. Women's Outerwear and Girls' Wear 413.4 412.7 -0.2
10. Men's Clothing 584.4 581.7 -0.5
11. Men's Furnishings 548.4 550.1 0.3
12. Boys' Clothing and Furnishings 458.0 469.4 2.5
13. Jewelry 881.7 924.2 4.8
14. Notions 560.6 615.6 9.8
15. Toilet Articles and Drugs 798.0 817.2 2.4
16. Furniture and Bedding 590.6 604.1 2.3
17. Floor Coverings 540.2 527.4 -2.4
18. Housewares 758.1 763.5 0.7
19. Major Appliances 247.7 248.5 0.3
20. Radio and Television 88.8 88.3 -0.6
21. Recreation and Education [fn2] 114.0 115.0 0.9
22. Home Improvements [fn2] 118.2 116.7 -1.3
23. Auto Accessories [fn2] 108.0 108.0 0.0
Groups 1 - 15: Soft Goods 566.0 577.3 2.0
Groups 16 - 20: Durable Goods 455.8 458.0 0.5
Groups 21 - 23: Misc. Goods [fn2] 113.5 113.9 0.4
Store Total [fn3] 531.5 538.5 1.3

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

Rev. Rul. 93-9, 1993-1 C.B. 83, 1993-5 I.R.B. 5.