REVENUE RULE 94-37

1994-1 C.B. 150, 1994-24 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: June 13, 1994

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

The following Department Store Inventory Price Indexes for March 1994 were issued by the Bureau of Labor Statistics on April 13, 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, March 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 March 1993/March 1994/Percent Change from Mar. 1993 to Mar. 1994 [Fn1]
1. Piece Goods 476.9 481.4 0.9
2. Domestics and Draperies 624.7 640.4 2.5
3. Women's and Children's Shoes 648.1 651.2 0.5
4. Men's Shoes 912.0 920.4 0.9
5. Infants' Wear 602.8 600.9 -0.3
6. Women's Underwear 515.5 524.5 1.7
7. Women's Hosiery 270.4 276.5 2.3
8. Women's and Girls' Accessories 574.1 562.0 -2.1
9. Women's Outerwear and Girls' Wear 453.7 448.1 -1.2
10. Men's Clothing 607.2 606.3 -0.1
11. Men's Furnishings 570.4 549.5 -3.7
12. Boys' Clothing and Furnishings 488.0 480.8 -1.5
13. Jewelry 948.4 1037.4 9.4
14. Notions 573.0 638.4 11.4
15. Toilet Articles and Drugs 827.4 840.2 1.5
16. Furniture and Bedding 614.1 635.1 3.4
17. Floor Coverings 536.5 513.7 -4.2
18. Housewares 763.4 779.0 2.0
19. Major Appliances 247.3 249.8 1.0
20. Radio and Television 87.4 86.4 -1.1
21. Recreation and Education [fn2] 115.1 115.6 0.4
22. Home Improvements [fn2] 123.6 123.2 -0.3
23. Auto Accessories [fn2] 106.8 106.4 -0.4
Groups 1 - 15: Soft Goods 595.0 597.9 0.5
Groups 16 - 20: Durable Goods 458.5 463.9 1.2
Groups 21 - 23: Misc. Goods [fn2] 114.8 115.0 0.2
Store Total [fn3] 549.1 552.3 0.6

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. 94-37, 1994-1 C.B. 150, 1994-24 I.R.B. 4.