7. INVENTORIES

			As adjusted		As adjusted
	March 29,		December 28,		March 30,
	2014		2013		2013
			(See Note 1)		(See Note 1)
Raw materials	$	926,000	$	935,000	$	1,343,000
Work in process	1,957,000		1,918,000		2,513,000
Finished goods	23,932,000		22,088,000		22,856,000
	$	26,815,000	$	24,941,000	$	26,712,000

As discussed in Note 1 the Company changed its accounting for finished goods inventory to the lower of cost or market, with cost being determined on the first-in, first-out method. Inventories other than finished goods at retail stores, called production inventory, primarily consists of piece goods, trim and work-in-process. The Company has historically and continues to value its production inventory at the lower of cost or market value using first-in-first-out method. Market value is determined for our finished goods inventory and production inventory based on an estimate of the net realizable value. The Company determines net realizable value based on an analysis of historical results, age, obsolescence, potential use, market conditions, and estimates regarding future selling prices. Based on this analysis, the Company records an adjustment for any decline in its value. If the actual results or conditions are different than those projected by management, future period gross margin rates may be unfavorably or favorably affected.