REVENUE RULE 95-61

1995-2 C.B. 72, 1995-35 I.R.B. 6

Internal Revenue Service

Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: August 28, 1995

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

The following Department Store Inventory Price Indexes for June 1995 were issued by the Bureau of Labor Statistics on July 14, 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, June 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 June 1994/June 1995/Percent Change from June 1994 to June 1995 [Fn1]
1. Piece Goods 469.1 522.9 11.5
2. Domestics and Draperies 639.5 646.7 1.1
3. Women's and Children's Shoes 653.6 624.2 -4.5
4. Men's Shoes 916.3 919.3 0.3
5. Infants' Wear 603.8 587.9 -2.6
6. Women's Underwear 512.0 515.1 0.6
7. Women's Hosiery 272.9 283.3 3.8
8. Women's and Girls' Accessories 569.9 549.5 -3.6
9. Women's Outerwear and Girls' Wear 428.7 416.3 -2.9
10. Men's Clothing 602.8 597.5 -0.9
11. Men's Furnishings 547.3 562.4 2.8
12. Boys' Clothing and Furnishings 489.3 477.8 -2.4
13. Jewelry 1022.2 1004.9 -1.7
14. Notions 736.1 758.7 3.1
15. Toilet Articles and Drugs 851.4 859.9 1.0
16. Furniture and Bedding 647.0 663.1 2.5
17. Floor Coverings 539.1 577.0 7.0
18. Housewares 782.8 771.8 -1.4
19. Major Appliances 250.3 247.2 -1.2
20. Radio and Television 85.0 82.1 -3.4
21. Recreation and Education [fn2] 115.3 114.0 -1.1
22. Home Improvements [fn2] 120.4 122.6 1.8
23. Auto Accessories [fn2] 106.3 106.8 0.5
Groups 1 - 15: Soft Goods 591.7 587.8 -0.7
Groups 16 - 20: Durable Goods 466.4 462.8 -0.8
Groups 21 - 23: Misc. Goods [fn2] 114.3 113.9 -0.3
Store Total [fn3] 548.9 545.8 -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. 95-61, 1995-2 C.B. 72, 1995-35 I.R.B. 6