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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. $150,000b. $160,000c. $144,000d. $140,000
Units Conversion CostsBeginning WIP (50% Complete) 4,500 $20,000Units started during May 16,500 $160,000Spoilage - normal 500Units completed and transferred 15,500Ending WIP (80% Complete) 5,000
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