2.	Inventories

Inventories are valued at the lower of cost or market, with cost being determined using the average cost method. At June 30, 2013 and December 31, 2012, inventories were comprised of the following:

	June 30, 2013		December 31, 2012
Packaging inventory	$	260,188	$	214,757
E-Commerce packaging inventory		117,620		136,524
Beverage supply inventory		159,534		169,049
Candy inventory		-		5,003
Store supplies and merchandise inventory		32,313		34,044
Total	$	569,655	$	559,377

Packaging and e-commerce packaging inventories consist of labels, boxes, bags and styrofoam coolers for packaging and shipping baked goods. Beverage supply inventory consists of coffee, tea, flavored syrups and bottled soft drinks, and candy inventory primarily consists of bulk candy sold by weight. Store supplies and merchandise inventory consists of paper goods, packaging, decorating materials, other miscellaneous supplies purchased in bulk and consumed in daily operations and logoed hats, tee shirts, bandanas and aprons used primarily as employee uniforms.