A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Units Cost Market $ 97 118 342 257 323 201 $105 107 102 93 59 48 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers 477 288 209 157 100 317 132 91 329 91 182 167 77 104 112 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