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

		Per Unit
Item	Units	Cost			Market
Car audio equipment
Speakers	349	$	104		$	112
Stereos	264		125			115
Amplifiers	330		100			109
Subwoofers	208		66			56
Security equipment
Alarms	484		164			154
Locks	295		107			97
Cameras	216		326			336
Binocular equipment
Tripods	189		88			98
Stabilizers	174		109			119

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.