which of the following statements about inventory valuation for statement of financial position purposes are correct? According to IAS 2 Inventories, average cost and FIFO are both acceptable methods of arriving at the cost of inventories. Inventories of finisfed goods may be valued at labour and materials cos only, without including overheards. It may be acceptable for inventories to be valued at selling price less estimated profit margin. Inventories should be valued at the lowest of cost, net realisable value and replacement cost