1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.

A physical Inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Units Cost Market 349 264 330 208 $104 125 100 66 $112 115 109 56 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers 295 216 164 107 326 154 97 336 189 174 88 109 98 119 Required: 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the lower of cost or market for the inventory applied separately to each item. Per Unit Total LCM applied to: Individual Items Item Units Cost Market Cost Market 349 S 104 $ 112 264 125 115 Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms 330 100 109 208 66 56 484 164 154 Locks 295 107 97 Cameras 216 326 336 Binocular equipment Tripods Stabilizers 189 88 98 174 109 119 Total Required 1 Required 2 If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. View transaction list Journal entry worksheet Record LCM adjustment. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal