REVENUE RULE 94-59

1994-2 C.B. 88, 1994-39 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: September 26, 1994

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The June 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, June 30, 1994.

The following Department Store Inventory Price Indexes for June 1994 were issued by the Bureau of Labor Statistics on July 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, June 30, 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 June 1993/June 1994/Percent Change from June 1993 to June 1994 [Fn1]
1. Piece Goods 471.8 469.1 -0.6
2. Domestics and Draperies 627.1 639.5 2.0
3. Women's and Children's Shoes 645.9 653.6 1.2
4. Men's Shoes 902.4 916.3 1.5
5. Infants' Wear 610.7 603.8 -1.1
6. Women's Underwear 511.4 512.0 0.1
7. Women's Hosiery 268.2 272.9 1.8
8. Women's and Girls' Accessories 575.1 569.9 -0.9
9. Women's Outerwear and Girls' Wear 423.2 428.7 1.3
10. Men's Clothing 593.9 602.8 1.5
11. Men's Furnishings 559.7 547.3 -2.2
12. Boys' Clothing and Furnishings 489.6 489.3 -0.1
13. Jewelry 959.7 1022.2 6.5
14. Notions 601.4 736.1 22.4
15. Toilet Articles and Drugs 834.3 851.4 2.0
16. Furniture and Bedding 621.1 647.0 4.2
17. Floor Coverings 533.1 539.1 1.1
18. Housewares 768.0 782.8 1.9
19. Major Appliances 248.3 250.3 0.8
20. Radio and Television 86.3 85.0 -1.5
21. Recreation and Education [fn2] 114.5 115.3 0.7
22. Home Improvements [fn2] 119.6 120.4 0.7
23. Auto Accessories [fn2] 105.7 106.3 0.6
Groups 1 - 15: Soft Goods 584.4 591.7 1.2
Groups 16 - 20: Durable Goods 459.7 466.4 1.5
Groups 21 - 23: Misc. Goods [fn2] 113.5 114.3 0.7
Store Total [fn3] 542.5 548.9 1.2

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. 94-59, 1994-2 C.B. 88, 1994-39 I.R.B. 4.