During 2021, its first year of operations, XYZ Company produced 25,000

units and sold 19,000 units. During 2022, XYZ Company produced 30,000

units and sold 34,000 units. The following information was taken from

XYZ's accounting records for 2021 and 2022:

20212022

Direct materials cost per unit ............$14$17

Direct labor cost per unit ................$20$24

Variable overhead cost per unit ...........$9$11

Variable selling & admin cost per unit ....$6$8

Fixed overhead (total cost) ...............$150,000$225,000

Fixed selling & admin (total cost) ........$103,000$119,000

Assume the selling price of XYZ Company's product was $75 per unit for

both years.

Calculate XYZ Company's 2022 net income using absorption costing.

Assume XYZ Company employs a LIFO inventory cost flow assumption.