REVENUE RULE 94-60

1994-2 C.B. 89, 1994-39 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: September 26, 1994

26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; department stores. The July 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, July 31, 1994.

The following Department Store Inventory Price Indexes for July 1994 were issued by the Bureau of Labor Statistics on August 12, 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, July 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 July 1993/July 1994/Percent Change from July 1993 to July 1994 [Fn1]
1. Piece Goods 478.6 471.5 -1.5
2. Domestics and Draperies 628.0 644.3 2.6
3. Women's and Children's Shoes 637.2 639.0 0.3
4. Men's Shoes 897.8 908.6 1.2
5. Infants' Wear 607.2 607.6 0.1
6. Women's Underwear 517.6 519.2 0.3
7. Women's Hosiery 270.0 279.2 3.4
8. Women's and Girls' Accessories 557.9 567.7 1.8
9. Women's Outerwear and Girls' Wear 405.5 404.3 -0.3
10. Men's Clothing 592.4 598.2 1.0
11. Men's Furnishings 552.8 545.6 -1.3
12. Boys' Clothing and Furnishings 479.5 483.6 0.9
13. Jewelry 962.5 1018.7 5.8
14. Notions 611.4 768.7 25.7
15. Toilet Articles and Drugs 839.1 851.1 1.4
16. Furniture and Bedding 619.8 646.7 4.3
17. Floor Coverings 539.4 555.6 3.0
18. Housewares 766.4 785.9 2.5
19. Major Appliances 247.3 250.9 1.5
20. Radio and Television 86.5 84.7 -2.1
21. Recreation and Education [fn2] 114.0 115.4 1.2
22. Home Improvements [fn2] 118.5 119.6 0.9
23. Auto Accessories [fn2] 105.8 106.0 0.2
Groups 1 - 15: Soft Goods 577.0 583.4 1.1
Groups 16 - 20: Durable Goods 459.3 467.8 1.9
Groups 21 - 23: Misc. Goods [fn2] 113.1 114.2 1.0
Store Total [fn3] 537.9 544.7 1.3

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. 94-60, 1994-2 C.B. 89, 1994-39 I.R.B. 5.