Inventories and major vendors

12 Months Ended

Oct. 31, 2011

Note 3 - Inventories and major vendors

Inventories consist of the following as of October 31:

	2011			2010

Raw materials and supplies	$	2,023,108		$	1,405,443
Work in process		5,425			15,425
Finished goods		4,309,914			3,348,944
Less inventory reserve		(148,846	)		(161,969	)

Totals	$	6,189,601		$	4,607,843

Purchases of connector products from two major vendors represented 22% and 13% of total inventory purchases in 2011, while purchases of connector products from three major vendors represented 23%, 18%, and 14% of total inventory purchases in 2010. The Company has arrangements with these vendors to purchase product based on purchase orders periodically issued by the Company.

- 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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