Identify, by indicating the relevant box in the table below, whether each of the following statements about the valuation of inventory are correct or incorrect, according to IAS 2 Inventories.

Inventory items are normally to Correct Incorrect be valued at the higher of cost and net realisable value.

The cost of goods Correct Incorrect manufactured by an entity will include materials and labour only. Overhead costs cannot be included.

LIFO (last in, first out) cannot Correct Incorrect be used to value inventory.

Selling price less estimated Correct Incorrect profit margin may be used to arrive at cost if this gives a reasonable approximation to actual cost.

(2 marks)