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

		Per Unit
Item	Units	Cost			Market
Car audio equipment
Speakers	351	$	106		$	114
Stereos	266		127			117
Amplifiers	332		102			111
Subwoofers	210		68			58
Security equipment
Alarms	486		166			156
Locks	297		109			99
Cameras	218		328			338
Binocular equipment
Tripods	191		90			100
Stabilizers	176		111			121

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.