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

		Per Unit
Item	Units	Cost			Market
Car audio equipment
Speakers	339	$	94		$	102
Stereos	254		115			104
Amplifiers	320		90			99
Subwoofers	198		56			45
Security equipment
Alarms	474		154			129
Locks	285		97			88
Cameras	206		314			326
Binocular equipment
Tripods	179		74			88
Stabilizers	164		101			109

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.