The following data, in physical units, describe a grinding process for January: (Click the icon to view the January data.) Inspection occurs at the 100% completion stage. Normal spoilage is 4% of the good units passing inspection. Read the requirements. Requirement 1. Compute the normal and abnormal spoilage in units. Requirement 2. Assume that the equivalent-unit cost of a spoiled unit is $8. Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your answer. Regardless of the targeted normal spoilage, abnormal spoilage is The targeted normal spoilage rate subject to change. Many companies have reduced their spoilage to almost zero, which would potential savings. \begin{tabular}{|lr|} \hline Work in process, beginning & 18,700 \\ Started during current period & 186,200 \\ \cline { 2 - 3 } To account for & 204,900 \\ Spoiled units & 12,600 \\ Good units completed and transferred out & 167,500 \\ Work in process, ending & 24,800 \\ \hline Accounted for & 204,900 \\ \hline \end{tabular} 1. Compute the normal and abnormal spoilage in units. 2. Assume that the equivalent-unit cost of a spoiled unit is $8. Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your