REVENUE RULE 95-12

1995-5 I.R.B. 36.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: January 30, 1995

Section 472. Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.

LIFO; price indexes; department stores. The November 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, November 30, 1994.

The following Department Store Inventory Price Indexes for November 1994 were issued by the Bureau of Labor Statistics on December 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, November 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 November 1993/November 1994/Percent Change from Nov. 1993 to Nov. 1994 [Fn1]
1. Piece Goods 484.5 486.9 0.5
2. Domestics and Draperies 647.6 641.4 -1.0
3. Women's and Children's Shoes 655.4 640.6 -2.3
4. Men's Shoes 917.7 914.2 -0.4
5. Infants' Wear 607.4 623.0 2.6
6. Women's Underwear 520.0 529.5 1.8
7. Women's Hosiery 275.9 281.1 1.9
8. Women's and Girls' Accessories 577.1 578.0 0.2
9. Women's Outerwear and Girls' Wear 446.1 432.0 -3.2
10. Men's Clothing 623.7 614.9 -1.4
11. Men's Furnishings 572.0 577.5 1.0
12. Boys' Clothing and Furnishings 503.3 486.9 -3.3
13. Jewelry 957.2 1007.9 5.3
14. Notions 617.3 748.5 21.3
15. Toilet Articles and Drugs 841.3 852.9 1.4
16. Furniture and Bedding 626.3 637.5 1.8
17. Floor Coverings 519.6 553.8 6.6
18. Housewares 778.6 781.1 0.3
19. Major Appliances 247.5 248.4 0.4
20. Radio and Television 86.6 84.3 -2.7
21. Recreation and Education [fn2] 115.6 115.3 -0.3
22. Home Improvements [fn2] 120.7 120.8 0.1
23. Auto Accessories [fn2] 105.5 106.3 0.8
Groups 1 - 15: Soft Goods 600.0 598.6 -0.2
Groups 16 - 20: Durable Goods 462.3 464.1 0.4
Groups 21 - 23: Misc. Goods [fn2] 114.4 114.4 0.0
Store Total [fn3] 552.5 552.1 -0.1

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. 95-12, 1995-5 I.R.B. 36