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Inventories
12 Months Ended
Dec. 31, 2017
Inventory Disclosure [Abstract]  
Inventories
  5. INVENTORIES

Inventories are stated at the lower of cost and net realizable value. Cost is based on the weighted average cost by adjusting standard cost to approximate actual manufacturing costs on a quarterly basis; the cost is therefore dependent on the Company’s manufacturing performance. In the case of underutilization of manufacturing facilities, the costs associated with the unused capacity are not included in the valuation of inventories but charged directly to cost of sales. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.

Reserve for obsolescence is estimated for excess uncommitted inventories based on the previous quarter’s sales, backlog of orders and production plans.

Inventories, net of reserve, consisted of the following:

 

     December 31,
2017
     December 31,
2016
 

Raw materials

     125        81  

Work-in-process

     787        756  

Finished products

     423        336  
  

 

 

    

 

 

 

Total

     1,335        1,173