That's reasonable for a 401, if it has not been previously rebuilt, and if it is a good rebuildable engine. That is, no head or block cracks, no thrown rods, etc.
Yes, it's a drop-in for a 360 replacement. The flywheels/flexplates however are different for the different engines, so you may have some issues in that regard.
I say go for it, but that's me. Do more research, and make up your mind by what you discover.
Now running! a 360 GW engine in my Wrangler. Former owner of \'78 Wag with 401 and \'84 GW engine donor, RIP.