4. INVENTORY

Inventories consist of the following:


	July 31, 2020		October 31, 2019
	(unaudited)
Raw materials	$	4,402,303	$	3,253,361
Supplies		3,235,947		3,330,513
Work in process		1,150,662		1,434,552
Finished goods		2,262,233		5,784,599
Totals	$	11,051,145	$	13,803,025

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 of approximately $648,000 and $581,000 for the nine months ended July 31, 2020 and 2019, 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 $184,000 and $21,000 for the nine months ended July 31, 2020 and 2019, respectively.