An entity manufactures parts at its factory which it uses at a number of distribution centers. The following costs relate to the manufacture of the parts:

1. Fixed production overheads, apportioned on a reasonable basis

2. Costs of transporting the parts from the factory to the distribution centers

3. The costs of returning the transportation vehicles from the distribution centers to the factory

4.The ongoing costs of storing the parts at the distribution centers prior to their use.

Which of the above costs can be included in the cost of parts at the distribution centers under the principles of IAS 2?

A) 1 and 2

B) 2 and 4

C) 2 and 3

D) 1 and 4