Question
Which of the following statements about inventory valuation for statement of financial position purposes are correct? (i) According to IAS 2 Inventories, average cost and
Which of the following statements about inventory valuation for statement of financial position purposes are correct?
(i) According to IAS 2 Inventories, average cost and FIFO (first in and first out) are both acceptable methods of arriving at the cost of inventories
(ii) Inventories of finished goods may be valued at labour and materials cost only, without including overheads
(iii) Inventories should be valued at the lowest of cost, net realisable value and replacement cost
(iv) It may be acceptable for inventories to be valued at selling price less estimated profit margin
A. (ii) and (iv)
B. (ii) and (iii)
C. (i) and (iii)
D. (i) and (iv)
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