Note 3. Inventories

Inventories consist primarily of raw materials and components, finished goods, and product held at third-party contract manufacturers. Inventories are stated at the lower of cost or market and cost is determined based on a first-in, first-out method or, for a portion of raw materials inventory, the average cost method. Inventories consisted of the following (in thousands):



	May 31,		August 31,
	2016		2015
Product held at third-party contract manufacturers	$	2,688	$	3,224
Raw materials and components		3,378		3,597
Work-in-process		454		141
Finished goods		26,660		25,090
Total	$	33,180	$	32,052