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

Item	Units	Per Unit
Cost	Market
Car audio equipment
Speakers	341	$ 96	$ 104
Stereos	256	117	106
Amplifiers	322	92	101
Subwoofers	200	58	47
Security equipment
Alarms	476	156	131
Locks	287	99	90
Cameras	208	316	328
Binocular equipment
Tripods	181	76	90
Stabilizers	166	103	111

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.