Inventories

12 Months Ended

Sep. 30, 2019

Inventories

Inventories

NOTE 8—INVENTORIES

Inventories consist of the following (in thousands):

	September 30,
	2019		2018
Finished products	$	10,905	$	7,099
Work in process and inventoried costs under long-term contracts		46,951		63,169
Materials and purchased parts		48,938		23,710
Customer advances		—		(9,779)
Net inventories	$	106,794	$	84,199

At September 30, 2019, work in process and inventoried costs under long-term contracts includes approximately $5.8 million in costs incurred outside the scope of work or in advance of a contract award compared to $0.9 million at September 30, 2018. We believe it is probable that we will recover the costs inventoried at September 30, 2019, plus a profit margin, under contract change orders or awards within the next year.

Costs we incur for certain U.S. federal government contracts include general and administrative costs as allowed by government cost accounting standards. The amounts remaining in inventory at September 30, 2019 and 2018 were $0.5 million and $2.0 million, respectively.