Nazaro's Boot Company makes specialty boots for the rodeo circuit. On December 31, 2014, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,100 heels at a cost of $16 each in raw materials inventory. During 2015, the company purchased 43,000 additional heels at $16 each and manufactured 16,650 pairs of boots.

1. Determine the unit and dollar amounts of raw materials inventory in heels at December 31, 2015.
2. Compute the dollar amount of working capital that can be reduced at year-end if the ending heel raw inventory is cut by half.