REVENUE RULE 94-25

1994-1 C.B. 148, 1994-17 I.R.B. 17.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 25, 1994

Section 472.--Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The January 1994 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, January 31, 1994.

The following Department Store Inventory Price Indexes for January 1994 were issued by the Bureau of Labor Statistics on February 17, 1994. 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, January 31, 1994.

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 January 1992/January 1993/Percent Change from Jan. 1992 to Jan. 1993 [Fn1]
1. Piece Goods 465.4 450.9 -3.1
2. Domestics and Draperies 610.3 651.0 6.7
3. Women's and Children's Shoes 635.8 644.7 1.4
4. Men's Shoes 901.7 914.6 1.4
5. Infants' Wear 611.0 601.4 -1.6
6. Women's Underwear 502.6 512.4 1.9
7. Women's Hosiery 270.1 277.9 2.9
8. Women's and Girls' Accessories 580.9 564.3 -2.9
9. Women's Outerwear and Girls' Wear 408.4 414.9 1.6
10. Men's Clothing 585.0 592.0 1.2
11. Men's Furnishings 553.8 550.8 -0.5
12. Boys' Clothing and Furnishings 476.8 474.5 -0.5
13. Jewelry 949.3 974.8 2.7
14. Notions 602.9 617.6 2.4
15. Toilet Articles and Drugs 822.8 844.4 2.6
16. Furniture and Bedding 611.1 632.3 3.5
17. Floor Coverings 530.4 520.9 -1.8
18. Housewares 759.8 777.9 2.4
19. Major Appliances 248.7 248.6 0.0
20. Radio and Television 87.7 86.0 -1.9
21. Recreation and Education [fn2] 115.0 115.0 0.0
22. Home Improvements [fn2] 119.9 123.6 3.1
23. Auto Accessories [fn2] 108.0 106.6 -1.3
Groups 1 - 15: Soft Goods 573.8 583.7 1.7
Groups 16 - 20: Durable Goods 457.7 462.8 1.1
Groups 21 - 23: Misc. Goods [fn2] 114.4 114.7 0.3
Store Total [fn3] 537.0 544.0 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, 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).

1994-1 C.B. 148, 1994-17 I.R.B. 17.