Inventories

12 Months Ended

Sep. 30, 2020

Inventories

Inventories

NOTE 6—INVENTORIES

Inventories consist of the following (in thousands):

	September 30,
	2020		2019
Finished products	$	14,838	$	10,905
Work in process and inventoried costs under long-term contracts		73,076		46,951
Materials and purchased parts		39,337		48,938
Net inventories	$	127,251	$	106,794

At September 30, 2020, work in process and inventoried costs under long-term contracts includes approximately $5.3 million in costs incurred outside the scope of work or in advance of a contract award compared to $5.8 million at

September 30, 2019. We believe it is probable that we will recover the costs inventoried at September 30, 2020, plus a profit margin, under contract change orders or awards within the next year.