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.