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

Item	Units	Per Unit
Cost	Market
Car audio equipment
Speakers	347	$ 102	$ 110
Stereos	262	123	113
Amplifiers	328	98	107
Subwoofers	206	64	54
Security equipment
Alarms	482	162	152
Locks	293	105	95
Cameras	214	324	334
Binocular equipment
Tripods	187	86	96
Stabilizers	172	107	117

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.