INVENTORIES

6 Months Ended

Jun. 30, 2011

As of June 30, 2011 and December 31, 2010, inventory consists of the following:

	June 30,		December 31,
	2011		2010
Finished goods	$	134,161	$	281,199
Work in progress		20,865		91,984
Raw materials		5,000,297		2,863,573
Advance deposits		8,322,403		11,319,171
	$	13,477,726	$	14,555,927

The Company prepays various suppliers for inventory. The deposits paid in advance are included as a component of the Company's inventory.

- 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

DIVERSIFIED GLOBAL HOLDINGS GROUP INC. 10-Q/A