Ekland Division

Income Statement
For the Quarter Ending
Absorption IS

Contribution IS
March 31, 2011 June 30, 2011
25,000
50,000
25,000
25,000
$ 2,500,000 $ 5,000,000

Production:
Sales in units
Sales
Cost of goods sold
Beginning inventory
Production costs applied
Total
Less: Ending inventory
Gross profit
Selling and general expenes
Net income
Production costs per unit

$625,000
1,562,000
$2,187,000
$625,000
$938,000
500,000
$438,000
$

62.48

$625,000
3,000,000
$3,625,000
$2,114,583
$3,489,583
500,000
$2,989,583
$

60.00

Production:
Sales
Cost of goods sold
Beginning inventory
Production costs applied
Total
Less: Ending inventory
Contribution margin
Selling and general expenes
Fixed production expenses
Net income
Production costs per unit

March 31, 2011 June 30, 2011

25,000
50,000
25,000
25,000
$ 2,500,000 $ 5,000,000
$500,000
$500,000
1,250,000
2,500,000
$1,750,000
$3,000,000
$500,000
$1,750,000
$1,250,000
$1,250,000
500,000
500,000
500,000
500,000
$250,000
$250,000
$
50.00 $
50.00