How can we create dynamic, dependent LOVs in Application Composer for Custom Objects?

We have a requirement to create dynamic LOVs in a Custom Business Object within Application Composer, where the child LOV depends on the parent LOV selection. For example, we have two LOVs: Item Category (parent) and Item Number (child). When a user selects a value in Item Category, the Item Number LOV should display only items that fall under the selected category.

If you have encountered a similar requirement or have any suggestions on how to achieve this, please let me know.