Which of the following statements about the valuation of inventory are correct, according to IAS 2...
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• Which of the following statements about the valuation of inventory are correct, according to IAS 2 Inventories? • 1 Inventory items are normally to be valued at the higher of cost and net realisable value. • 2 The cost of goods manufactured by an entity will include materials and labour only. Overhead costs cannot be included. • 3 LIFO (last in, first out) cannot be used to value inventory. • 4 Selling price less estimated profit margin may be used to arrive at cost if this gives a reasonable approximation to actual cost. • A 1, 3 and 4 only •B 1 and 2 only C 3 and 4 only D None of the statements are correct • Which of the following statements about the valuation of inventory are correct, according to IAS 2 Inventories? • 1 Inventory items are normally to be valued at the higher of cost and net realisable value. • 2 The cost of goods manufactured by an entity will include materials and labour only. Overhead costs cannot be included. • 3 LIFO (last in, first out) cannot be used to value inventory. • 4 Selling price less estimated profit margin may be used to arrive at cost if this gives a reasonable approximation to actual cost. • A 1, 3 and 4 only •B 1 and 2 only C 3 and 4 only D None of the statements are correct
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Option 1 is wrong because As per IAS 2 Inventory should be valued ... View the full answer
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