5. INVENTORIES

9 Months Ended

Jan. 31, 2018

Inventory Disclosure [Abstract]

INVENTORIES

Inventories are recorded at the lower of cost or market (net realizable value) and primarily include raw materials, work-in-process (comprised of raw materials, direct labor and overhead costs associated with in-process manufacturing services), and finished goods (representing manufacturing services completed and ready for shipment) associated with contract manufacturing services. Overhead costs allocated to work-in-process inventory are based on the normal capacity of our production facilities and do not include costs from abnormally low production or idle capacity, which are expensed directly to cost of contract manufacturing in the period incurred. During the three and nine months ended January 31, 2018, we expensed $5,344,000 and $11,182,000, respectively, in idle capacity costs directly to cost of contract manufacturing in the accompanying condensed consolidated financial statements. No idle capacity costs were incurred during the same prior year periods. Cost is determined by the first-in, first-out method. Inventories consist of the following:

	January 31, 2018		April 30, 2017
Raw materials	$	8,799,000	$	11,304,000
Work-in-process		5,419,000		13,755,000
Finished goods		–		8,040,000
Total inventories	$	14,218,000	$	33,099,000