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

		Per Unit
Item	Units	Cost			Market
Car audio equipment
Speakers	347	$	102		$	110
Stereos	262		123			113
Amplifiers	328		98			107
Subwoofers	206		64			54
Security equipment
Alarms	482		162			152
Locks	293		105			95
Cameras	214		324			334
Binocular equipment
Tripods	187		86			96
Stabilizers	172		107			117

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.