Illinois Company reported the following informationabout the production and sales of its only produc

Illinois Company reported the following informationabout the production and sales of its only product during its firstmonth of operations: 

               Sales($225 perunit)     $405,000 
               Directmaterials used     $176,000 
               Directlabor     $100,000 
               Variablefactoryoverhead     $44,000 
               Fixedfactoryoverhead     $80,000 
               Variableselling and administrativeexpenses     $20,000 
               Fixedselling and administrativeexpenses     $10,000 

Ending inventories: 

Directmaterials     -0- 
WIP                                        -0- 
Finishedgoods     400     units 

The cost of goods sold under variable costingis_____. 

a.     $320,000 
b.     $360,000 
c.     $288,000 
d.     $272,000