Inventories

Inventories consist of the following:



	January 31, 2013		October 31, 2012
	(In thousands)
Raw materials	$	36,139	$	30,400
Finished goods and work in process	46,050		32,937
Supplies and other	2,374		2,567
Total	$	84,563	$	65,904

Fixed costs related to excess manufacturing capacity, if any, have been expensed in the period they were incurred and, therefore, are not capitalized into inventory. The values of inventories are based on the following accounting methods:



	January 31, 2013		October 31, 2012
	(In thousands)
LIFO	$	37,680	$	28,224
FIFO	46,883		37,680
Total	$	84,563	$	65,904

During interim quarters, the Company estimates a LIFO reserve based on our expectations of year-end inventory levels and costs. If our calculations indicate that an adjustment at year-end will be required, we record a proportionate share of this amount during the quarter. At year-end, we calculate the actual LIFO reserve and record an adjustment for the difference between the annual calculation and any estimates recognized during the interim quarters. Because the interim projections are subject to many factors beyond management's control, the results could differ significantly from the year-end LIFO calculation. Our projections resulted in no interim LIFO allocation for the three months ended January 31, 2013. Similarly, no interim LIFO allocation was recognized for the three months ended January 31, 2012.

For inventories valued under the LIFO method, replacement cost exceeded the LIFO value by approximately $10.7 million as of January 31, 2013 and October 31, 2012.