NOTE B — INVENTORIES

Inventories consist of prime coil, non-standard coil and tubular materials. Prime coil inventory consists primarily of raw materials, non-standard coil inventory consists primarily of raw materials, and tubular inventory consists of both raw materials and finished goods. Inventories are valued at the lower of cost or replacement market. Cost for prime coil inventory is determined using the last-in, first-out (“LIFO”) method. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method.

A summary of inventory values by product group follows:


	June 30, 2014		March 31, 2014
Prime Coil Inventory	$	9,963,999	$	7,685,177
Non-Standard Coil Inventory		1,798,628		2,572,787
Tubular Raw Material		2,164,364		463,254
Tubular Finished Goods		24,986,157		24,567,341

	$	38,913,148	$	35,288,559