Question 6 . Which of the following statements about the valuation of inventory are correct, according to IAS 2 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 entity will include materials and labour only. Overhead costs cannot be included. 3 LIFO (last in, first out) cannot be used to value inventory. . 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 and 4 only . None of the statements are correct