Note 2. Inventories

6 Months Ended

Jun. 30, 2013

NOTE 2. INVENTORIES

Inventories are valued at the lower of cost or net realizable value with cost determined on the weighted-average method. Work in progress and finished goods are composed of direct material, direct labor and a portion of manufacturing overhead. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs to complete and dispose. The Company recorded inventory mark-down of $0 and $324,831 for the six months ended June 30, 2013 and 2012, respectively.

Inventories consist of the following:

	June 30, 2013		December 31, 2012

Raw Materials	$	649,117	$	765,637
Work-in-progress		775,387		860,535
Finished goods		1,472,413		1,576,552
Total	$	2,896,916	$	3,202,724

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

+ References+ Details

APOLLO SOLAR ENERGY, INC. 10-Q