Part I. Book Inventory & Stock Shortage/Overage (20 points) 1. The manager of finance in the PePe Department Store finds that the book inventory is $33,816.00 and the physical inventory is $36,054.00. 1) Indicate whether this department store is experiencing a shortage or an overage (1 point). 2) What is the shortage$/overage$? (1 point) 3) If the net sales of the department store are $45,000, what is the shortage%/overage%? (2 points) 2. A gift store reported the following records for its operation during the month of February. @Cost $280,000 Inventory on Feb. 1 Net sales Markdowns Returns to vendors Employee discounts Purchases @Retail $435,000 $440,000 $88,000 $20,000 $15,000 $498,000 $15,000 $320,000 a. What was the book value of the closing inventory at retail in February? (2 points) b. What was the cumulative markup% of total merchandise handled in February? (3 points) (Hint: Cumulative MU% is the MU% for Total Merchandise Handled (TMH), and TMH = Opening inventory + Purchases - RTV) c. What was the book inventory at cost on February 28 when the store closed? (2 points) d. The physical inventory at retail taken after closing the store on February 28 amounted to $368,000. Did this store experience a shortage or an overage or neither? (1 point) e. What was the shortage%overage%? (1 point)