2. Given the following inventory information, conduct an ABC analysis by annual dollar usage, and current inventory value. Construct an ABC inventory matrix. Is the firm stocking the correct inventores? Identify Items which are overstocked, understocked, and matched. Item Unit Cost Class % of Total Inventory Class 1 2 3 $6.00 $5 25 $0.25 $1.00 $5.50 $70.00 $0.75 $1.50 $32.00 $4.00 4 5 6 Annual Usage Annual Usage % of Total (Units) (S) Usage 100 6,500 4.000 1,500 2,000 500 800 8,000 1,000 3,500 Physical Inventory Physical Inventory (Units) ($) 8,000 120 1,000 375 500 800 20.000 7 8 2,000 9 500 10 125 Item % of Total Cumulative % Class Usage of Total Usage Item % of Total Cumulative % of Class Inventory Total Inventory Alters ABC Analysis of Imranfory Usage (5) B Items Chems Clans B Items A lems ABC Analysis of Physical Inventory