REVENUE RULE 94-13

1994-1 C.B. 146, 1994-8 I.R.B. 6.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: February 22, 1994

Section 472.--Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The November 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 references to, November 30, 1993.

The following Department Store Inventory Price Indexes for November 1993 were issued by the Bureau of Labor Statistics on December 10, 1993. The indexes are accepted by the Internal Revenue Service, under s 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, November 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 November 1992/November 1993/Percent Change from Nov. 1992 to Nov. 1993 [Fn1]
1. Piece Goods 488.8 484.5 -0.9
2. Domestics and Draperies 617.0 647.6 5.0
3. Women's and Children's Shoes 643.6 655.4 1.8
4. Men's Shoes 917.9 917.7 0.0
5. Infants' Wear 624.1 607.4 -2.7
6. Women's Underwear 516.6 520.0 0.7
7. Women's Hosiery 271.4 275.9 1.7
8. Women's and Girls' Accessories 590.5 577.1 -2.3
9. Women's Outerwear and Girls' Wear 437.7 446.1 1.9
10. Men's Clothing 604.6 623.7 3.2
11. Men's Furnishings 576.8 572.0 -0.8
12. Boys' Clothing and Furnishings 487.8 503.3 3.2
13. Jewelry 919.6 957.2 4.1
14. Notions 609.3 617.3 1.3
15. Toilet Articles and Drugs 816.5 841.3 3.0
16. Furniture and Bedding 613.8 626.3 2.0
17. Floor Coverings 530.6 519.6 -2.1
18. Housewares 768.4 778.6 1.3
19. Major Appliances 247.2 247.5 0.1
20. Radio and Television 88.0 86.6 -1.6
21. Recreation and Education [fn2] 115.9 115.6 -0.3
22. Home Improvements [fn2] 119.1 120.7 1.3
23. Auto Accessories [fn2] 107.8 105.5 -2.1
Groups 1 - 15: Soft Goods 589.3 600.0 1.8
Groups 16 - 20: Durable Goods 460.0 462.3 0.5
Groups 21 - 23: Misc. Goods [fn2] 114.8 114.4 -0.3
Store Total [fn3] 546.4 552.5 1.1

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. 94-13, 1994-1 C.B. 146, 1994-8 I.R.B. 6.