NOTE 3. INVENTORIES

Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited finished goods inventory since all products are custom, made-to-order and usually ship upon completion. Finished goods inventory costs include direct materials, direct labor, and overhead. All inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Inventories consisted of the following:


	July 2,		January 2,
	2016		2016
	(in thousands)
Raw materials	$	24,655	$	18,609
Work in progress		1,419		1,246
Finished goods		4,323		3,198

	$	30,397	$	23,053