Inventories and major vendors

3 Months Ended

Jan. 31, 2017

Note 4 - 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. Inventory carrying value is net of inventory reserves of $534,000 and $500,000 at January 31, 2017 and October 31, 2016, respectively. Inventories consist of the following (in thousands):

	January 31, 2017		October 31, 2016

Raw materials and supplies	$	2,921	$	2,642
Work in process		178		279
Finished goods		3,455		3,101

Totals	$	6,554	$	6,022

No vendor accounted for greater than 10% of inventory purchases for the three months ended January 31, 2017. Purchases of inventory from two major vendors during the three months ended January 31, 2016 represented 14% and 12% of total inventory purchases. The Company has arrangements with these vendors to purchase product based on purchase orders periodically issued by the Company.