Annual report pursuant to section 13 and 15(d)

INVENTORIES

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INVENTORIES
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
INVENTORIES

 

3.           INVENTORIES

 

Inventories consist of material, labor and manufacturing overhead and are recorded at the lower of cost, using the weighted average cost method, or net realizable value.

 

The components of inventories at December 31, 2011 and 2010, net of inventory reserves, were as follows:

 

    2011   2010  
Raw materials   $ 23,034   $ 956  
               
Finished goods   562   3,193  
Total   $ 23,596   $ 4,419  

 

The Company periodically reviews quantities of inventory on hand and compares these amounts to expected usage of each particular product or product line. The Company records, as a charge to cost of sales, any amounts required to reduce the carrying value to net realizable value.