In the past, Taylor Industries has used a fixed-time 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 1 1234567899 10 $ ANNUAL USAGE 1,800 12,500 2,500 51,200 10,000 1,000 2,300 11,500 5,400 15,600 Item Number 1 2 3 4 5 6 7 8 ITEM NUMBER 11 12 13 14 15 9 FREDE Class 16 LT 879 17 18 19 20 a. Classify each item in inventory using an ABC plan. ANNUAL USAGE $ 13,500 900 43,100 10,400 1,500 10,700 4,300 62,400 3,800 3,200

In the post, Taylor Industries has used a fixed-time 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. a. Classify each item in inventory using an ABC plan