5. The Machining Department is the first of a 2-stage production process. Spoilage is identified when the units have completed the Machining process. Costs of spoiled units are assigned to units completed and transferred to the second department in the period spoilage is identified. The following information concerns Machining's conversion costs in May 2016:

Units

Conversion Costs

Beginning WIP (50% Complete)

4,500

$20,000

Units started during May

16,500

$160,000

Spoilage - normal

500

Units completed and transferred

15,500

Ending WIP (80% Complete)

5,000

Using the weighted average method, what was Machining's conversion cost transferred to the second production department?

a. $150,000

b. $160,000

c. $144,000

d. $140,000 please show work