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

Item	Units	Per Unit
		Cost	Market
Car audio equipment
Speakers	345	$ 100	$ 108
Stereos	260	121	110
Amplifiers	326	96	105
Subwoofers	204	62	51
Security equipment
Alarms	480	160	135
Locks	291	103	94
Cameras	212	320	332
Binocular equipment
Tripods	185	80	94
Stabilizers	170	107	115

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.