A physical inventory of Liverpool Company taken at December 31 reveals the following.

		Per Unit
Item	Units	Cost			Market
Car audio equipment
Speakers	342	$	97		$	105
Stereos	257		118			107
Amplifiers	323		93			102
Subwoofers	201		59			48
Security equipment
Alarms	477		157			132
Locks	288		100			91
Cameras	209		317			329
Binocular equipment
Tripods	182		77			91
Stabilizers	167		104			112

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.