REVENUE RULE 94-20

1994-1 C.B. 147, 1994-13 I.R.B. 14.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: March 28, 1994

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The December 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, December 31, 1993.

The following Department Store Inventory Price Indexes for December 1993 were issued by the Bureau of Labor Statistics on January 13, 1994. The indexes are accepted by the Internal Revenue Service, under section 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, December 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 December 1992/December 1993/Percent Change from Dec. 1992 to Dec. 1993 [Fn1]
1. Piece Goods 485.7 469.8 -3.3
2. Domestics and Draperies 605.9 644.6 6.4
3. Women's and Children's Shoes 641.0 647.2 1.0
4. Men's Shoes 907.7 915.8 0.9
5. Infants' Wear 621.4 603.9 -2.8
6. Women's Underwear 500.7 509.0 1.7
7. Women's Hosiery 269.9 276.8 2.6
8. Women's and Girls' Accessories 585.4 574.3 -1.9
9. Women's Outerwear and Girls' Wear 423.0 430.1 1.7
10. Men's Clothing 593.5 609.0 2.6
11. Men's Furnishings 573.8 563.9 -1.7
12. Boys' Clothing and Furnishings 477.2 485.5 1.7
13. Jewelry 901.8 931.1 3.2
14. Notions 602.9 621.9 3.2
15. Toilet Articles and Drugs 820.8 842.3 2.6
16. Furniture and Bedding 610.4 628.9 3.0
17. Floor Coverings 535.0 516.1 -3.5
18. Housewares 763.0 775.7 1.7
19. Major Appliances 248.4 246.8 -0.6
20. Radio and Television 87.2 86.3 -1.0
21. Recreation and Education [fn2] 114.8 114.9 0.1
22. Home Improvements [fn2] 119.4 121.0 1.3
23. Auto Accessories [fn2] 108.0 106.6 -1.3
Groups 1 - 15: Soft Goods 579.7 589.3 1.7
Groups 16 - 20: Durable Goods 458.1 461.3 0.7
Groups 21 - 23: Misc. Goods [fn2] 114.1 114.2 0.1
Store Total [fn3] 540.1 546.2 1.1

Footnote1. Absence of a minus sign before percentage change in this column signifies price increase.
Footnote2. Indexes on a January 1986 = 100 base.
Footnote3. 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. 94-20, 1994-1 C.B. 147, 1994-13 I.R.B. 14.