NOTE 6—INVENTORIES

Significant components of inventories are as follows (in thousands):


	September 30,		September 30,
	2018		2017

Finished products	$	7,099	$	4,369
Work in process and inventoried costs under long-term contracts		63,169		84,131
Materials and purchased parts		23,710		10,163
Customer advances		(9,779)		(10,948)
Net inventories	$	84,199	$	87,715

At September 30, 2018, work in process and inventoried costs under long-term contracts includes approximately $0.9 million in costs incurred outside the scope of work or in advance of a contract award, compared to $4.3 million as of September 30, 2017. We believe it is probable that we will recover the costs inventoried at September 30, 2018, plus a profit margin, under contract change orders or awards within the next year.

Costs we incur for certain U.S. federal government contracts include general and administrative costs as allowed by government cost accounting standards. The amounts remaining in inventory at September 30, 2018 and 2017 were $2.0 million and $2.5 million, respectively.