Which of the following statements about the valuation of inventory are correct, according to IAS2 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 enterprise will include materials and labour only. Overhead costs cannot
be included.
(3) If LIFO (last in, first out) is used to value inventory, additional disclosures must be made in the financial
statements.
(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 only
D 3 and 4 only

D