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

		Per Unit
Item	Units	Cost			Market
Car audio equipment
Speakers	352	$	107		$	115
Stereos	267		128			118
Amplifiers	333		103			112
Subwoofers	211		69			59
Security equipment
Alarms	487		167			157
Locks	298		110			100
Cameras	219		329			339
Binocular equipment
Tripods	192		91			101
Stabilizers	177		112			122

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.