The premium for public liability insurance for the electronics company in Exercise 25-2 is $1,710, and the premium for fire and theft insurance on the inventory is $2,160. The average balances of the inventories for the period are as follows:

How much of the insurance costs should be allocated to each department, given that public liability insurance is apportioned on the basis of gross sales and that property insurance is allocated on the basis of the values of the average inventories?

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Department Cellular phones CD players VCRs Total Average Inventory $160,000 120,000 40,000 $320,000