REVENUE RULE 94-32

1994-1 C.B. 149, 1994-21 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: May 23, 1994

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.

LIFO; price indexes; department stores. The February 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 reference to, February 28, 1994.

The following Department Store Inventory Price Indexes for February 1994 were issued by the Bureau of Labor Statistics on March 16, 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, February 28, 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
(February 1941 = 100, unless otherwise noted)

Groups February 1993/February 1994/Percent Change from Feb. 1993 to Feb. 1994 [Fn1]
1. Piece Goods 463.0 456.6 -1.4
2. Domestics and Draperies 622.3 642.1 3.2
3. Women's and Children's Shoes 638.8 645.7 1.1
4. Men's Shoes 911.3 915.8 0.5
5. Infants' Wear 606.9 602.7 -0.7
6. Women's Underwear 510.2 517.7 1.5
7. Women's Hosiery 270.3 275.3 1.8
8. Women's and Girls' Accessories 571.4 556.8 -2.6
9. Women's Outerwear and Girls' Wear 431.5 425.9 -1.3
10. Men's Clothing 596.4 599.3 0.5
11. Men's Furnishings 560.9 545.7 -2.7
12. Boys' Clothing and Furnishings 487.1 479.4 -1.6
13. Jewelry 952.1 985.6 3.5
14. Notions 602.2 627.1 4.1
15. Toilet Articles and Drugs 818.4 843.9 3.1
16. Furniture and Bedding 608.3 634.5 4.6
17. Floor Coverings 539.0 522.7 -3.0
18. Housewares 759.7 774.4 1.9
19. Major Appliances 248.0 250.1 0.5
20. Radio and Television 87.7 86.3 -1.6
21. Recreation and Education [fn2] 115.1 114.7 -0.3
22. Home Improvements [fn2] 120.1 124.9 4.0
23. Auto Accessories [fn2] 107.5 106.6 -0.8
Groups 1 - 15: Soft Goods 584.7 586.8 0.4
Groups 16 - 20: Durable Goods 457.6 463.1 1.2
Groups 21 - 23: Misc. Goods [fn2] 114.4 114.7 0.3
Store Total [fn3] 542.9 545.8 0.5

FN1. Absence of a minus sign before percentage change in this column signifies price increase.
FN2. Indexes on a February 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. 94-32, 1994-1 C.B. 149, 1994-21 I.R.B. 4.