Problem 5-5A Lower of cost or market LO P2 A physical inventory of Liverpool Company taken at December 31 reveals the following Per Unit Units Cost Market Item Car audio equipment Speakers Stereos Amplifiers Subwoofers 353 $108 $116 129 104 70 268 334 212 119 113 60 Security equipment Alarms Locks Cameras 488 299 220 168 9 11 330 158 101 340 Binocular equipment Tripods Stabilizers 193 178 92 113 102 123 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