Inventories - Reserve for Obsolete and Slow Moving Inventory

6 Months Ended

Jul. 29, 2011

3.	Inventories – Reserve for Obsolete and Slow Moving Inventory

Inventories at July 29, 2011 and January 31, 2011 consisted of the following:

	July 29, 2011			January 31, 2011
Raw materials	$	7,111,000		$	7,498,000
Work in process		2,251,000			1,906,000
Finished goods		506,000			383,000
Reserve for obsolete and slow moving inventory		(2,223,000	)		(2,424,000	)
Inventories, net	$	7,645,000		$	7,363,000

The reserve for obsolete and slow moving inventory activity for the six months ended July 29, 2011 and July 30, 2010 was as follows:

	Six Months Ended
	July 29, 2011			July 30, 2010
Beginning balance	$	2,424,000		$	2,025,000
Inventory writen off		(316,000	)		-
Amounts charged to operations		115,000			192,000
Ending balance	$	2,223,000		$	2,217,000

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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