For August, Lanny Company had 25,000 units in BWIP, 40 percent complete, with costs equal to $36,000. During August, the cost incurred was $450,000. Using the FIFO method, Lanny had 125,000 equivalent units for August. There were 100,000 units transferred out during the month. The cost of goods transferred out is
  a.  $500,000.
  b.  $400,000.
  c.  $450,000.
  d.  $360,000.
  e.  $50,000.