Ms. Nkuhlu after studying her pharmacist degree at the University of Nkwinyamahembe ("UniNkwi"). A well-known university in the further east decided to start a prostate fighting chemist shop. Since she doesn't understand Cost Accounting decided to ask her brother, Xibonkanyi about the best method to value inventory and which is recognised by International Financial Reporting Standards (IFRS). The reason being that she will be dealing with a lot work-in-process (WIP). After having some few rounds of good alkaline beer concocted by Ms. Nkuhlu called Vukanyi, a popular beer concocted using the fruits of Marula tree. Xibonkanyi gave Ms. Nkuhlu an extensive definition of "Work-in-process (WIP) prior dealing with the costing method thereof; Due to time Xibonkanyi also mentioned definitions of First-in-first out method (FIFO) and Weighted- average method and gave her the following home work to be discussed on their second meeting: 01/09 05/09 07/09 10/09 11/09 30/09 Opening inventory 1 200 units @ R6,00 per unit Purchased 2 300 units @ R7,35 per unit Issued to production 600 units Purchased 1 400 units @7,45 per unit Issued to production 700 units Expected inventory count ? 14. Which one of the following is correct? 1) Work-in-process (WIP) inventory refers to inventory used in the manufacturing process. WIP are natural, unprocessed or partially processed materials that are converted into a more refined product. 2) Work-in-process (WIP) inventory refers to partially completed products or components that cannot be classified as finished products. 3) Work-in-process (WIP) inventory refers to smaller items kept in the stores that are used by all departments (manufacturing, support and administrative). WIP are items which, as the term suggests, are consumed. They can be destroyed, wasted or spent. 4) Work-in-process (WIP) inventory refers to partially completed products or components that cannot be classified as finished products