Inventories and major vendors

12 Months Ended

Oct. 31, 2016

Note 5 - Inventories and major vendors

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. In June 2015, the Company acquired Rel-Tech, a company that valued its inventories using specific identification (last purchase price) on a FIFO basis. As of July 31, 2016, Rel-Tech values its inventory cost using the weighted average cost of accounting. Inventories consist of the following (in thousands):

	2016		2015

Raw materials and supplies	$	2,642	$	2,671
Work in process		279		270
Finished goods		3,101		3,987

Totals	$	6,022	$	6,928

Purchases of inventory from two major vendors during fiscal 2016 represented 9% and 6%, respectively, of total inventory purchases compared to two major vendors who represented 12% and 8%, respectively, of total inventory purchases in fiscal 2015. The Company has arrangements with these vendors to purchase product based on purchase orders periodically issued by the Company.