REVENUE RULE 95-47

1995-1 C.B. 106, 1995-26 I.R.B. 5

Internal Revenue Service

Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: June 26, 1995

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The April 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, April 30, 1995.

The following Department Store Inventory Price Indexes for April 1995 were issued by the Bureau of Labor Statistics on May 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, April 30, 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 April 1994/April 1995/Percent Change from Apr. 1994 to Apr. 1995 [Fn1]
1. Piece Goods 470.6 485.2 3.1
2. Domestics and Draperies 638.0 642.6 0.7
3. Women's and Children's Shoes 657.5 639.1 -2.8
4. Men's Shoes 923.0 919.0 -0.4
5. Infants' Wear 606.7 613.8 1.2
6. Women's Underwear 525.8 540.1 2.7
7. Women's Hosiery 275.3 281.3 2.2
8. Women's and Girls' Accessories 572.2 545.3 -4.7
9. Women's Outerwear and Girls' Wear 450.8 448.3 -0.6
10. Men's Clothing 609.4 613.4 0.7
11. Men's Furnishings 553.1 573.0 3.6
12. Boys' Clothing and Furnishings 488.9 494.1 1.1
13. Jewelry 1024.2 1024.3 0.0
14. Notions 631.5 779.7 23.5
15. Toilet Articles and Drugs 848.1 850.8 0.3
16. Furniture and Bedding 640.7 649.4 1.4
17. Floor Coverings 524.1 570.2 8.8
18. Housewares 775.5 778.8 0.4
19. Major Appliances 250.2 245.7 -1.8
20. Radio and Television 85.8 85.4 -0.5
21. Recreation and Education [fn2] 115.7 114.2 -1.3
22. Home Improvements [fn2] 122.4 122.7 0.2
23. Auto Accessories [fn2] 106.5 106.9 0.4
Groups 1 - 15: Soft Goods 600.4 604.0 0.6
Groups 16 - 20: Durable Goods 463.8 465.7 0.4
Groups 21 - 23: Misc. Goods [fn2] 114.9 114.1 -0.7
Store Total [fn3] 553.5 556.6 0.6

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. 95-47, 1995-1 C.B. 106, 1995-26 I.R.B. 5