Perez Manufacturing Company was started on January 1, year 1, when it acquired $79,000 cash by issuing common stock. Perez immediately purchased office furniture and manufacturing equipment costing $8,400 and $32,200, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of four years. The company paid $11,600 for salaries of administrative personnel and $15,400 for wages to production personnel. Finally, the company paid $12,180 for raw materials that were used to make inventory. All inventory was started and completed during the year. Perez completed production on 4,700 units of product and sold 3,780 units at a price of $15 each in year