Notes Four: INVENTORIES

Inventories were as follows at November 30:

Certain steel inventories are valued using the last - in, first - out method. These items comprised 13.3% and 2.7% of consolidated inventories at November 30, 2003 and 2002, respectively. If such inventories had been valued using the first-in, first-out method, total inventories would have increased by $630,000 and $1,164,000 at November 30, 2003 and 2002, respectively.