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 2 3 4 5 9 10 ANNUAL USAGE $1,900 12,700 2,700 51,800 14 10,300 15 1,200 16 17 2,500 11,700 18 19 20 5,600 15,800 ITEN NUMBER 11 12 13 Item Number 10 ANNUAL USAGE $ 13,800 Classify each item in inventory using an ABC plan. Class 1,000 43,600 10,600 1,600 10,900 4,500 63,200 4,000 3,400
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 2 3 4 5 9 10 ANNUAL USAGE $1,900 12,700 2,700 51,800 14 10,300 15 1,200 16 17 2,500 11,700 18 19 20 5,600 15,800 ITEN NUMBER 11 12 13 Item Number 10 ANNUAL USAGE $ 13,800 Classify each item in inventory using an ABC plan. Class 1,000 43,600 10,600 1,600 10,900 4,500 63,200 4,000 3,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please do not give image format and solve with full explanation
Transcribed Image Text:1:C
2 C
3 C
4 A
58
6 C
7 C
8 A
9 B
10 A
11 A
12 C
13 A
14 B
15 C
16 B
17 B
18 A
19 B
20 C
Transcribed Image Text:Problem 20-40 (Algo)
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.
ITEN
NUMBER
1
3
ANNUAL
USAGE
$1,900
12,700
2,700
51,800
10,300
1,200
2,500
11,700
5,600
15,800
Item Number
ITEM
NUMBER
10
21C
12
13
a. Classify each item in inventory using an ABC plan.
15
16
17
18
19
20
Class
ANNUAL
USAGE
$ 13,800
1,000
43,600
10,600
1,600
10,900
4,500
63,200
4,000
3,400
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