4. INVENTORY

Inventories consist of the following:


	January 31, 2019		October 31, 2018
	(unaudited)
Raw materials	$	2,678,474	$	4,508,297
Supplies		3,218,890		2,957,452
Work in process		1,525,529		1,222,251
Finished goods		7,409,554		6,228,809
Totals	$	14,832,447	$	14,916,809

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 of approximately $1,488,000 and $377,000 for the three months ended January 31, 2019 and 2018, respectively. 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 corn inventories of approximately $24,000 for the three months ended January 31, 2019.