I did exactly that one day...well actually i think i spent a whole weekend..
i cut everything up that was smaller than a 1/2 yard into what i considered (usable) size scraps. i started with the largest pieces and if there was a fq i would cut that, then cut the next size piece from what was next (i think 9" squares) then 6" squares, 4" and 2 1/2" i also had strips of various widths and lengths. i sorted, ironed, cut, stacked...filled an under-the bed sweater tote with Usable, ready scraps. i sorted strips if they were 1" or less wide they went into a basket for rugs, if there were small triangles, odd shapes that did not (fit into my sizes) went into another basket for applique pieces. it was fun to spend a couple days just playing with the fabric :thumbup: