Problem 5-5A Lower of cost or market P2 A physical inventory of Liverpool Company taken at December 31 reveals the following. Item Units Cost per Unit Market per Unit 345 $ 90 $ 98 260 111 100 Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms 326 86 95 204 52 41 480 150 125 Locks 291 93 84 Cameras 212 310 322 Binocular equipment Tripods Stabilizers 185 70 84 170 97 105 Required 1. Compute the lower of cost or market for the inventory applied separately to each item. Check (1) $273,054 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account