The following data, in physical units, describe a grinding process for January:

Work in process, beginning	19,100
Started during current period	191,000
To account for	210,100
Spoiled units	12,200
Good units completed and transferred out	172,500
Work in process, ending	25,400
Accounted for	210,100

Inspection occurs at the 100% completion stage. Normal spoliage is 4% of the good units passing inspection.

Requirements:

1. Compute the normal and abnormal spoilage in units.

Normal spoilage ___ units

Abnormal spoilage ___ units

2. Assume that the equivalent-unit cost of a spoiled unit is $9. Compute the amount of potential savings if all spoilage were eliminated, assuming that all the other costs would be unaffected. Comment on your answer