(5) The industrial company KLM SA manufactures fitness equipment for playgrounds upon orders from its customers. During september of the fiscal year 20x9, it processed and completed exclusively the order No 200, which concerned 2000 individual swings with backpacks with a sale price of 200 each.

During the month of September, the following actions were taken:

Purchased raw materials costing 180,000 with credit

Raw materials costing 150.000 were consumed in the production of raw materials

They were paid to the staff through the sight account for direct labour of September 85000 . The employer's contributions amounted to 20.000 and the deductions to 15.000 respectively.

Order No. 200 was delivered to the customer on September ^29th . Payment will be made in 2 months.

KLM S.A. charges general industrial expenses to orders using a predetermined attribution rate that at the beginning of the fiscal year was estimated at 60% of the cost of direct labor. Requested:

1. To carry out the journal entries that were made in September from the purchase of the raw materials until the delivery of the order to the customer.
2. Present business activities that the method of costing personalized production (on-demand costing) could be effectively applied.