8. Inventory

Inventory as of December 31, 2016 and 2015 consisted of the following:

	December 31,
(in thousands)	2016		2015
Raw materials	$	4,483	$	900
Work in process		8,651		2,743
Finished goods		1,420		74
Total inventory	$	14,554	$	3,717

Inventory acquired prior to receipt of marketing approval of ONIVYDE was expensed as research and development expense as incurred. The Company began to capitalize the costs associated with the production of ONIVYDE upon receipt of FDA approval on October 22, 2015.

During the year ended December 31, 2016, the Company incurred aggregate charges of $3.6 million related to excess and scrap inventory and excess manufacturing capacity. These expenses were recorded as a component of “Cost of revenues.”