Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 19

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) $360,000.
C) $450,000.
D) $400,000.
E) $50,000.