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

Item	Units	Per Unit
		Cost	Market
Car audio equipment
Speakers	348	$ 103	$ 111
Stereos	263	124	114
Amplifiers	329	99	108
Subwoofers	207	65	55
Security equipment
Alarms	483	163	153
Locks	294	106	96
Cameras	215	325	335
Binocular equipment
Tripods	188	87	97
Stabilizers	173	108	118

Required: 1. Compute 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.