REVENUE RULE 94-54

1994-2 C.B. 87, 1994-35 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: August 29, 1994

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

The following Department Store Inventory Price Indexes for May 1994 were issued by the Bureau of Labor Statistics on June 14, 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, May 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 May 1993/May 1994/Percent Change from May 1993 to May 1994 [Fn1]
1. Piece Goods 453.7 456.9 0.7
2. Domestics and Draperies 629.9 643.7 2.2
3. Women's and Children's Shoes 655.3 661.1 0.9
4. Men's Shoes 918.1 924.0 0.6
5. Infants' Wear 611.1 598.2 -2.1
6. Women's Underwear 514.1 516.4 0.4
7. Women's Hosiery 267.6 272.2 1.7
8. Women's and Girls' Accessories 586.4 567.5 -3.2
9. Women's Outerwear and Girls' Wear 443.6 444.7 0.2
10. Men's Clothing 601.0 607.1 1.0
11. Men's Furnishings 574.2 556.0 -3.2
12. Boys' Clothing and Furnishings 492.2 494.7 0.5
13. Jewelry 956.6 1027.5 7.4
14. Notions 602.9 727.0 20.6
15. Toilet Articles and Drugs 831.2 850.5 2.3
16. Furniture and Bedding 615.9 645.1 4.7
17. Floor Coverings 528.9 535.5 1.2
18. Housewares 765.8 779.7 1.8
19. Major Appliances 250.3 249.8 -0.2
20. Radio and Television 86.5 85.2 -1.5
21. Recreation and Education [fn2] 114.2 115.5 1.1
22. Home Improvements [fn2] 123.5 120.8 -2.2
23. Auto Accessories [fn2] 106.5 106.3 -0.2
Groups 1 - 15: Soft Goods 594.7 599.5 0.8
Groups 16 - 20: Durable Goods 459.1 465.3 1.4
Groups 21 - 23: Misc. Goods [fn2] 114.2 114.5 0.3
Store Total [fn3] 548.5 553.0 0.8

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. 94-54, 1994-2 C.B. 87, 1994-35 I.R.B. 5.