Inventories, net

3 Months Ended

Jun. 30, 2011

6.	Inventories, net		As of			As of
			June 30,			December 31,
			2011			2010
			(Unaudited)

	Raw materials	$	4,217,108		$	1,914,267
	Work in progress		911,069			361,374
	Finished goods		1,031,718			658,095

			6,159,895			2,933,736
	Allowance for obsolete inventories		(204,599	)		(200,367	)

		$	5,955,296		$	2,733,369

No additional allowance for obsolete inventories was recognized during the three and six months ended June 30, 2011 and 2010.

- 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

China Green Energy Industries, Inc. 10-Q