Which one of the following is incorrect?

1) According to the FIFO method, the accounting assumption is that materials received or purchased first are issued first. It is assumed that the units are issued in the order received, the oldest units first and then the units received from the next batch etcetera.

2) The weighted average method makes no assumptions about the flow of materials. The issuing of materials at a weighted average cost assumes that each batch taken from the storeroom is made up of the same quantities from each consignment in inventory at the date of issue. No attempt is made to identify when the units were purchased.

3) If the Ms. Nkuhlu uses the FIFO method of inventory valuation, the value of item to be on hand would be; R24 345.

4) If the Ms. Nkuhlu uses the weighted average method valuation, the value of item to be on hand would be; R23 493.