A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 336 $ 91 Stereos 251 Amplifiers 317 Subwoofers 195 Security equipment Alarms 471 Locks 282 Cameras 203 Binocular equipment Tripods 176 Stabilizers 161 $ 99 112 101 87 96 53 42 151 126 94 85 311 323 71 85 98 106 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.