Reference no: EM132048578

The Cloverleaf Corporation began business on January 1, 2016. The following transactions took place during the year (Assume all transactions involve cash):

1.) Acquired $5,000 of capital from the owners.

2.) Purchased $4,000 of direct raw materials.

3.) Used $3,500 of direct raw materials.

4.) Paid production workers $2,500.

5.) Paid $1,500 for manufacturing overhead. (Applied and actual overhead are the same.)

6.) Started and completed 2,000 units of WIP inventory

7.) Sold 1,500 units for $8 each.

8.) Paid $2,500 for selling and administrative expenses.

The amount of raw materials inventory reported on the balance sheet at December 31, 2016 would be: