3. INVENTORY

Inventories consist of the following:


	July 31, 2018		October 31, 2017
	(unaudited)
Raw materials	$	4,121,644	$	4,488,923
Supplies		2,961,224		2,929,385
Work in process		1,327,777		1,281,292
Finished goods		7,208,881		6,541,492
Totals	$	15,619,526	$	15,241,092

The Company performs a lower of cost or net realizable value analysis on inventory to determine if the net realizable 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, as a component of cost of goods sold, the Company recorded a loss on ethanol inventories, as a component of cost of goods sold, of approximately $420,000 and $65,000 for the nine months ended July 31, 2018 and 2017, respectively.