Reference no: EM131912681
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:
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