Note 2. Inventories: Schedule of Inventory (Details) (USD $)	Nov. 30, 2012	Aug. 31, 2012
Parts and supplies	$ 1,187,094	$ 1,180,428
Work-in-process	827,235	803,049
Finished goods	429,729	520,480
Inventory Reserve	(100,000)	(100,000)
Inventories, net	$ 2,344,058	$ 2,403,957

The amount of the valuation account as of the balance sheet date which reduces the carrying amount of inventory to net realizable value; takes into consideration such factors as market value, excessive quantities based on expected sales, technological obsolescence, and shrinkage. May also provide for estimated product returns or price concessions pertaining to product cost.

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+ Details