3. INVENTORY

Inventories consist of the following:


	April 30, 2017		October 31, 2016
	(unaudited)
Raw materials	$	3,443,209	$	9,098,492
Supplies		2,861,629		2,755,958
Work in process		1,378,603		1,347,754
Finished goods		6,308,742		5,139,209
Totals	$	13,992,183	$	18,341,413

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 $0 and $232,000 for the six months ended April 30, 2017 and 2016, respectively.