(3) Inventories

12 Months Ended

Jun. 30, 2017

Notes

(3) Inventories

(3)     Inventories

Inventories consist of the following as of June 30:

		2017		2016
Raw materials	$	3,766,940	$	1,999,936
Work in process		470,721		59,112
Finished goods		3,562,758		3,353,964
Inventory reserve		(402,737)		(415,758)
	$	7,397,682	$	4,997,254

Included in cost of goods sold for the years ended June 30, 2017 and 2016, are inventory write-offs of $435,000 and $270,000, respectively. During the fiscal year 2017 the write-off reflects inventories related to discontinued product lines, excess repair parts, product rejected for quality standards, and other non-performing inventories. The $270,000 during fiscal year 2016 was based on write-offs of non-performing inventories related to the Company’s Amerinet GPO contract and product rejected for quality standards.