REVENUE RULE 94-64

1994-2 C.B. 90, 1994-41 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: October 11, 1994

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

The following Department Store Inventory Price Indexes for August 1994 were issued by the Bureau of Labor Statistics on September 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, August 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 Rev. Proc. 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 August 1993/August 1994/Percent Change from Aug. 1993 to Aug. 1994 [Fn1]
1. Piece Goods 473.9 467.8 -1.3
2. Domestics and Draperies 638.5 649.2 1.7
3. Women's and Children's Shoes 633.0 636.4 0.5
4. Men's Shoes 897.9 907.3 1.0
5. Infants' Wear 613.0 606.4 -1.1
6. Women's Underwear 522.0 523.6 0.3
7. Women's Hosiery 274.4 277.9 1.3
8. Women's and Girls' Accessories 551.5 557.5 1.1
9. Women's Outerwear and Girls' Wear 418.4 407.1 -2.7
10. Men's Clothing 599.3 600.1 0.1
11. Men's Furnishings 551.1 552.3 0.2
12. Boys' Clothing and Furnishings 485.0 477.1 -1.6
13. Jewelry 965.9 1027.4 6.4
14. Notions 619.4 768.7 24.1
15. Toilet Articles and Drugs 839.6 852.5 1.5
16. Furniture and Bedding 619.5 646.9 4.4
17. Floor Coverings 540.5 554.2 2.5
18. Housewares 764.6 778.5 1.8
19. Major Appliances 247.6 249.5 0.8
20. Radio and Television 86.9 84.6 -2.6
21. Recreation and Education [fn2] 113.8 115.4 1.4
22. Home Improvements [fn2] 118.1 120.1 1.7
23. Auto Accessories [fn2] 105.6 106.0 0.4
Groups 1 - 15: Soft Goods 583.1 585.7 0.4
Groups 16 - 20: Durable Goods 459.3 465.4 1.3
Groups 21 - 23: Misc. Goods [fn2] 112.8 114.2 1.2
Store Total [fn3] 541.0 545.3 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. 94-64, 1994-2 C.B. 90, 1994-41 I.R.B. 4.