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

		Per Unit
Item	Units	Cost		Market
Audio equipment
Receivers	341	$	96	$	104
CD players	256		117		106
MP3 players	322		92		101
Speakers	200		58		47
Video equipment
Handheld LCDs	476		156		131
VCRs	287		99		90
Camcorders	208		316		328
Car audio equipment
Satellite radios	181		76		90
CD/MP3 radios	166		103		111

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.