NOTE 4. INVENTORIES

(Dollars in thousands)	2017		2016
Logs	$	20,133	$	23,342
Lumber, plywood and veneer		20,889		20,500
Materials and supplies		9,110		8,780
	$	50,132	$	52,622
Valued at lower of cost or net realizable value:
Last-in, first-out basis	$	25,127	$	29,769
Average cost basis		25,005		22,853
Total inventories	$	50,132	$	52,622

If the last-in, first-out inventory had been carried at average cost, the values would have been higher by approximately $10.9 million, $11.1 million and $10.6 million at December 31, 2017, 2016 and 2015, respectively.