Table:
|  |  | September 30, |
| --- | --- | --- |
|  | 2019 | 2018 |
| Finished products | $10,905 | $7,099 |
| Work in process and inventoried costs under long-term contracts | 46,951 | 63,169 |
| Materials and purchased parts | 48,938 | 23,710 |
| Customer advances | — | (9,779) |
| Net inventories | $  106,794 | $  84,199 |
Paragraphs:
NOTE 8—INVENTORIES
Inventories consist of the following (in thousands):
At September 30, 2019, work in process and inventoried costs under long-term contracts includes approximately $5.8 million in costs incurred outside the scope of work or in advance of a contract award compared to $0.9 million at September 30, 2018. We believe it is probable that we will recover the costs inventoried at September 30, 2019, plus a profit margin, under contract change orders or awards within the next year.
Costs we incur for certain U.S. federal government contracts include general and administrative costs as allowed by government cost accounting standards. The amounts remaining in inventory at September 30, 2019 and 2018 were $0.5 million and $2.0 million, respectively.
Question:
What is the percentage change in net inventories from 2018 to 2019?
Answer: (106794-84199)/84199 = 26.84