Inventory

Inventory is stated at the lower of cost (first-in, first-out) or net realizable value, and consists of materials, labor and overhead. On a quarterly basis, the Company uses consistent methodologies to evaluate inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, history, product mix and possible alternative uses. Inventory was comprised of the following:



	December 31, 2017		June 30, 2017
Raw materials	$	67,268	$	48,645
Work in process	25,977		22,567
Finished goods	12,667		9,859
Total	$	105,912	$	81,071

There are no amounts in inventory relating to contracts having production cycles longer than one year.