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Problem 10-23A (Algo) Effect of product versus period costs on financial statements LO 10-2, 10-3 Rundle Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP. 1. Acquired $58,000 cash by issuing common stock. 2. Paid $7,600 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $4,200 to selling and administrative employees. 4. Paid wages of $6,800 to production workers. 5. Paid $8,300 for furniture used in selling and administrative offices. The furniture was acquired on January 1, It had a $1,100 estimated salvage value and a four-year useful life. 6. Paid $7,400 for manufacturing equipment. The equipment was acquired on January 1 , it had a $1,000 estimated salvage value and a two-year useful life. 7. Sold inventory to customers for $25,100 that had cost $13,400 to make