Socket Corporation is a supplier of electronic components used in the manufacture of computers. The company uses the FIFO cost flow method. During the month of September 2014, Sockets inventory records for part CAP-0356, showed the following transactions:

Date	transaction	Units purchased	Unit cost	Units sold	Unit selling price
Sept 1	balance	900	$1.50
Sept 8	Purchase	400	$1.58
Sept 17	Sale		(800)		$4.19
Sept 23	Sale		(250)		$4.29
Sept 30	purchase	650		$1.79

Instructions

1. a) Assuming Socket uses a perpetual inventory system; prepare the journal entries for each of the above listed transactions.

b) Assuming Socket uses a periodic inventory system; explain how the journal entries as compared to part a. would differ. Be specific. Do not prepare journal entries.

c) What would be the difference in total cost of goods sold between parts a. and b.? Explain your answer.