Q7 Answer true or false to each of the following statements relating to the accounting treatment for inventory in accordance with IFRS. (4 marks) (1) Inventory should be valued at the lower of replacement cost and net realisable value (II) When valuing inventory material costs, labour costs and variable and fixed production overheads must be included (iii) Inventory can be valued using either last in, first out (LIFO) or weighted average cost (IV) Closing inventory is recorded as a Debit entry to the Statement of financial position and Credit entry to Cost of sales