Superior Camera Shop began using the dollar-value LIFO method in 2006 when its ending inventory was costed at $50,000. The 2007 ending inventory at year-end prices was $54,000. Calculate Superior Camera Shop s increase or decrease of inventory in real terms assuming 106 percent is an appropriate price index.
a) $7,240 increase
b) $3,773 increase
c) $1,000 increase
d) $943 increase