Note 5: INVENTORIES

Inventories were as follows at November 30:

Certain steel inventories are valued using the LIFO method. Inventories valued using the LIFO method comprised 24.1% and 7.8% of consolidated inventories at November 30, 2006 and 2005, respectively. The percentage increase from 2005 was due to lower inventories as a result of the sale of the Coatings Business offset by an increase of $10,182,000 in steel inventories. If inventories valued using the LIFO method had been valued using the FIFO method, total inventories would have increased by $6,085,000 and $6,864,000 at November 30, 2006 and 2005, respectively.