3. INVENTORY

Inventories consist of the following:


	April 30, 2016		October 31, 2015
	(unaudited)
Raw materials	$	2,570,650	$	4,504,388
Supplies		2,625,524		2,631,452
Work in process		1,555,217		1,445,084
Finished goods		4,980,935		3,631,101
Totals	$	11,732,326	$	12,212,025

The Company performs a lower of cost or net realizable value analysis on inventory to determine if the market values of certain inventories are less than their carrying value, which is attributable primarily to decreases in market prices of corn and ethanol. Based on the lower of cost or net realizable value analysis, the Company recorded a loss on ethanol inventories, as a component of cost of goods sold, of approximately $232,000 and $0 for the three and six month periods ended April 30, 2016 and 2015, respectively.