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, historical usage, product mix and possible alternative uses. Inventory was comprised of the following:



	December 31, 2018		June 30, 2018
Raw materials	$	79,771	$	61,748
Work in process	34,240		30,841
Finished goods	12,391		15,996
Total	$	126,402	$	108,585

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