Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Inspection occurs when units are 60% converted. Spoiled units generally constitute 5% of the good units. Data for December 2020 are as follows:

WIP, beginning inventory 12/1/2020 22,500 units

Direct materials (100% complete)

Conversion costs (80% compete)

Started during December 77,000 units

Completed and transferred out 12/31/2020 72,900 units

WIP, ending inventory 12/31/2020 18,600 units

Direct materials (100% complete)

Conversion costs (70% complete)

Costs for December:

WIP, beginning inventory:

Direct materials $153,000

Conversion costs 77,400

Direct materials added 230,400

Conversion costs added 295,000

Compute the number of total spoiled units.