Refer to the data in exercise 21.
Units in beginning inventory ....... 0
Units produced ............ 20,000
Units sold ............... 19,000
Selling price per unit .......... $ 100
Variable costs per unit:
Direct materials ........... $ 12.00
Direct labor .............. 25.00
Manufacturing overhead ........ 3.00
Selling and administrative ....... 2.00
Fixed costs in total:
Manufacturing overhead .......$500,000
Selling and administrative ........$600,000

Required
Calculate Bostock Boutique’s net income, assuming that the company uses absorption costing.