REVENUE RULE 94-3

1994-1 C.B. 145, 1994-2 I.R.B. 6.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: January 10, 1994

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

The following Department Store Inventory Price Indexes for October 1993 were issued by the Bureau of Labor Statistics on November 10, 1993. 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, October 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 October 1992/October 1993/Percent Change from Oct. 1992 to Oct. 1993 [Fn1]
1. Piece Goods 468.9 499.3 6.5
2. Domestics and Draperies 619.6 634.8 2.5
3. Women's and Children's Shoes 648.9 654.4 0.8
4. Men's Shoes 924.6 914.5 -1.1
5. Infants' Wear 619.8 602.4 -2.8
6. Women's Underwear 521.6 523.6 0.4
7. Women's Hosiery 266.6 267.7 0.4
8. Women's and Girls' Accessories 588.9 572.9 -2.7
9. Women's Outerwear and Girls' Wear 441.3 446.5 1.2
10. Men's Clothing 604.9 620.6 2.6
11. Men's Furnishings 568.7 562.6 -1.1
12. Boys' Clothing and Furnishings 492.3 500.0 1.6
13. Jewelry 935.1 998.5 6.8
14. Notions 618.3 600.2 -2.9
15. Toilet Articles and Drugs 815.8 839.3 2.9
16. Furniture and Bedding 610.2 628.3 3.0
17. Floor Coverings 523.6 545.6 4.2
18. Housewares 762.7 775.1 1.6
19. Major Appliances 247.8 248.0 0.1
20. Radio and Television 88.4 86.8 -1.8
21. Recreation and Education [fn2] 115.5 115.3 -0.2
22. Home Improvements [fn2] 119.5 118.9 -0.5
23. Auto Accessories [fn2] 107.8 105.6 -2.0
Groups 1 - 15: Soft Goods 590.9 598.4 1.3
Groups 16 - 20: Durable Goods 458.4 463.4 1.1
Groups 21 - 23: Misc. Goods [fn2] 114.6 113.9 -0.6
Store Total [fn3] 546.6 551.4 0.9

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. 94-3, 1994-1 C.B. 145, 1994-2 I.R.B. 6.