INVENTORIES

The composition of inventories is as follows (in thousands):



	April 30, 2019		July 31, 2018
Finished goods	$	15,604	$	14,223
Packaging	6,722		5,349
Other	4,412		2,949
Total Inventories	$	26,738	$	22,521

Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considered specific items, but also took into consideration the overall value of the inventory as of the balance sheet date. The inventory obsolescence reserve values at April 30, 2019 and July 31, 2018 were $931,000 and $1,136,000, respectively.