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:

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

	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