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Inventories

3 Months Ended

May 31, 2012

Note 2. Inventories

Inventories consisted of the following:

	May 31, 2012			August 31, 2011

Parts and supplies	$	1,181,381		$	1,248,534
Work-in-process		957,640			1,110,362
Finished goods		279,239			147,318
Reserve for obsolete inventory		(100,000	)		(100,000	)

Inventories, net	$	2,318,260		$	2,406,214

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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