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Question 6 10 points Save Answer Consider the following statements relating to inventories: 1. Work in progress for a manufacturer will include raw materials used, production labour costs and other costs relating to the production facility/factory. 2. When applying the rule of valuing inventory at the lower of cost and net realisable value, it should be applied to each separate category of inventory (eg. clothing, shoes, and accessories for a fashion retailer) NOT just to the total of all inventory. 3. In a period of rising prices, the inventory costing method that will result in the highest inventory valuation will be FIFO. 4. Closing inventory has been counted and valued and the figure used in the calculation of Cost of Sales but 3 crates which were thought be full are in fact empty. The reported Gross Profit figure is therefore lower than it should be as this inventory has been overstated. 5. Reducing the length of time inventory remains in stock before being sold can help to reduce losses due to damage and obsolescence. Which ONE of these statements relating to inventories is FALSE? O 3 only O 1 only O 4 only O 5 only O 2 only