4.INVENTORY

Inventory consisted of the following:


	July 31, 2020		October 31, 2019
	(unaudited)
Raw materials	$	1,575,307	$	932,503
Work in process		599,085		732,243
Finished goods		358,621		3,157,429
Supplies		1,334,406		1,454,083
Totals	$	3,867,419	$	6,276,258

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 $155,000 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, the Company recorded a loss on corn inventories, as a component of cost of goods sold, of approximately $184,000 and $21,000 for the nine months ended July 31, 2020 and 2019, respectively.