Components of inventories

9 Months Ended

Jul. 31, 2011

Note 5 - Components of inventories

Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or market. Cost has been determined using the weighted average cost method.

	July 31,			October 31,
	2011			2010

Raw materials and supplies	$	2,168,492		$	1,405,443
Work in process		21,551			15,425
Finished goods		4,195,085			3,348,944
Inventory reserve		(90,000	)		(161,969	)

Totals	$	6,295,128		$	4,607,843

Purchases of connector products from four major vendors in the nine month period ended July 31, 2011 represented 29%, 16%, 12% and 10% compared to three major vendors who represented 22%, 15%, and 13% of total inventory purchases for the same period in 2010. The Company has arrangements with these vendors to purchase product based on purchase orders periodically issued by the Company.

- 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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