4.	INVENTORIES

Inventories (at LIFO value) consist of the following as of December 31 (in thousands):


	2017			2016
Finished goods	$	32,986		$	29,686
Raw materials		19,432			20,231

Total FIFO (first-in, first out) inventories		52,418			49,917
Reserve to adjust inventories to LIFO value		(20,070	)		(21,371	)

Total LIFO inventories	$	32,348		$	28,546

Inventory related to the Company’s wood-alternative decking and railing products is stated at the lower of LIFO cost or net realizable value. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated net realizable value.

Under the LIFO method, reductions in inventory cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs. There was no inventory reduction during 2017 and 2016.

Inventories valued at lower of cost (FIFO method) and net realizable value as of December 31 consist of $2.2 million of raw materials. The Company utilizes the FIFO method of accounting related to its commercial railing and staging products.