A physical inventory of Liverpool Company taken at December 31 reveals the following Per Unit Item Car audio equipment Units Cost Market Speakers Stereos 346 $101 $109 261 122 327 205 112 106 53 Amplifiers Subwoofers 97 63 Security equipment Alarms Locks Cameras 481 161 292 104 213 323 151 94 Binocular equipment Tripods Stabilizers 186 171 85 106 95 116 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