Chan Chancellor Industries, a manufacturing company, prepays its insurance coverage for a two-year period. The premium for two-years worth of coverage is $14 400 and is paid at the beginning of the first year. Two-thirds of the premium relates to factory operations and one-third relates to selling and administrative activities.

The amount of premium that should be recorded as a product cost for the first year is:

		$ 4800
		$ 2400
		$ 9600
		$14 400