Inventories

Inventories are stated at the lower of cost or market. In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials, and other tools that are recorded using the last-in, first-out method and totaled $227 million at December 31, 2014 and $157 million at December 31, 2013. If the average cost method had been used, total inventories would have been $38 million higher than reported at December 31, 2014 and $35 million higher than reported at December 31, 2013. The cost of the remaining inventory was recorded on the average cost method. Inventories consisted of the following:



	December 31
Millions of dollars	2014		2013
Finished products and parts	$	2,606	$	2,445
Raw materials and supplies	754		720
Work in process	211		140
Total	$	3,571	$	3,305

Finished products and parts are reported net of obsolescence reserves of $161 million at December 31, 2014 and $130 million at December 31, 2013.