In the past, Taylor Industries has used a fixedtime period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's items.

ITEM NUMBER	ANNUAL USAGE	ITEM NUMBER	ANNUAL USAGE
1	$	2,000	11	$	13,900
2		12,900	12		1,100
3		2,800	13		43,900
4		52,200	14		10,700
5		10,400	15		1,700
6		1,300	16		11,000
7		2,600	17		4,600
8		11,900	18		63,600
9		5,800	19		4,100
10		16,000	20		3,500

a.Classify each item in inventory using an ABC plan.

Item Number	Class
1. 11.
2. 12.
3. 13
4. 14.
5. 15.
6. 16.
7. 17.
8. 18.
9. 19.
10. 20.