5. INVENTORY

Inventory consists of the following at October 31:


	2017		2016
Raw materials	$	4,488,923	$	9,098,492
Supplies		2,929,385		2,755,958
Work in process		1,281,292		1,347,754
Finished goods		6,541,492		5,139,209
Totals	$	15,241,092	$	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 $128,000 and $0 for the fiscal years ended October 31, 2017 and 2016, respectively