Inventories

3 Months Ended

Nov. 30, 2024

Inventories consist of the following (in millions):


	November 30, 2024		August 31, 2024
Raw materials	$	3,835	$	3,903
Work in process	245		190
Finished goods	311		246
Reserve for excess and obsolete inventory	(71)		(63)
Inventories, net	$	4,320	$	4,276

The Company is responsible for procuring certain components from suppliers for the manufacturing of finished goods at the direction of certain customers. If the Company does not obtain control of these components before they are transferred to the customer, the Company accounts for revenue and cost of revenue associated with such components on a net basis. Revenue and cost of revenue associated with components procured directly from customers is accounted for on a net basis if the components do not constitute a distinct good or service from the customer. As of November 30, 2024 and August 31, 2024, the Company had $1.1 billion and $734 million, respectively, of components included in prepaid expenses and other current assets in the Company’s Consolidated Balance Sheets, related to purchases made to procure components for customers whereby the associated revenue is expected to be accounted for on a net basis once transferred to the customer.