REVENUE RULE 95-43

1995-1 C.B. 105, 1995-23 I.R.B. 4

Internal Revenue Service

Revenue Ruling

LIFO, PRICE INDEXES; DEPARTMENT STORES

Published: June 5, 1995

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories
LIFO, price indexes; department stores. The March 1995 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, March 31, 1995.

The following Department Store Inventory Price Indexes for March 1995 were issued by the Bureau of Labor Statistics on April 12, 1995. 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, March 31, 1995.

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 March 1994/March 1995/Percent Change from Mar. 1994 to Mar. 1995 [Fn1]
1. Piece Goods 481.4 501.4 4.2
2. Domestics and Draperies 640.4 648.8 1.3
3. Women's and Children's Shoes 651.2 636.3 -2.3
4. Men's Shoes 920.4 920.3 0.0
5. Infants' Wear 600.9 623.9 3.8
6. Women's Underwear 524.5 522.8 -0.3
7. Women's Hosiery 276.5 280.4 1.4
8. Women's and Girls' Accessories 562.0 540.3 -3.9
9. Women's Outerwear and Girls' Wear 448.1 445.9 -0.5
10. Men's Clothing 606.3 616.9 1.7
11. Men's Furnishings 549.5 580.0 5.6
12. Boys' Clothing and Furnishings 480.8 489.2 1.7
13. Jewelry 1037.4 1026.6 -1.0
14. Notions 638.4 778.5 21.9
15. Toilet Articles and Drugs 840.2 839.5 -0.1
16. Furniture and Bedding 635.1 651.5 2.6
17. Floor Coverings 513.7 571.3 11.2
18. Housewares 779.0 773.3 -0.7
19. Major Appliances 249.8 247.5 -0.9
20. Radio and Television 86.4 85.2 -1.4
21. Recreation and Education [fn2] 115.6 114.7 -0.8
22. Home Improvements [fn2] 123.2 121.7 -1.2
23. Auto Accessories [fn2] 106.4 106.6 0.2
Groups 1 - 15: Soft Goods 597.9 603.7 1.0
Groups 16 - 20: Durable Goods 463.9 465.1 0.3
Groups 21 - 23: Misc. Goods [fn2] 115.0 114.2 -0.7
Store Total [fn3] 552.3 556.4 0.7

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. 95-43, 1995-1 C.B. 105, 1995-23 I.R.B. 4