Problem 10-23A (Algo) Effect of product versus period costs on financial statements LO 10-2, 10-3 Munoz Manufacturing Company experienced the following accounting events duting 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 $52,000 cash by issuing common stock. 2. Paid $7,900 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $4,000 to selling and administrative employees. 4. Paid wages of $6,600 to production workers. 5. Paid $5,900 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 $13,300 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,900 estimated salvage value and a three-year useful life. 7. Sold inventory to customers for $25,800 that had cost $13,900 to make. - Exp. = Notinc