Inventories and major vendors

6 Months Ended

Apr. 30, 2017

Note 4 - Inventories and major vendors

Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or market. Cost has been determined using the weighted average cost method. Inventory carrying value is net of inventory reserves of $676,000 and $500,000 at April 30, 2017 and October 31, 2016, respectively. Inventories consist of the following (in thousands):

	April 30, 2017		October 31, 2016

Raw materials and supplies	$	2,880	$	2,642
Work in process		330		279
Finished goods		3,480		3,101

Totals	$	6,690	$	6,022

Purchases of inventory from one major vendor for the three months ended April 30, 2017 represented 14% of inventory purchases. No vendor accounted for greater than 10% of inventory purchases for the six months ended April 30, 2017. No vendor accounted for greater than 10% of inventory purchases for the three months ended April 30, 2016. Purchases of inventory from one major vendor during the six months ended April 30, 2016 represented 10% of total inventory purchases. The Company has arrangements with its vendors to purchase product based on purchase orders periodically issued by the Company.