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

		Per Unit
Item	Units	Cost			Market
Car audio equipment
Speakers	344	$	99		$	107
Stereos	259		120			109
Amplifiers	325		95			104
Subwoofers	203		61			50
Security equipment
Alarms	479		159			134
Locks	290		102			93
Cameras	211		319			331
Binocular equipment
Tripods	184		79			93
Stabilizers	169		106			114

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.