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

		Per Unit
Item	Units	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. 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.

		Per Unit		Total		LCM applied to:
Item	Units	Cost	Market	Cost	Market		Individual Items
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
Total

• Record LCM adjustment.