INVENTORIES

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



	January 31, 2020		July 31, 2019
Finished goods	$	13,353	$	13,957
Packaging	5,122		5,681
Other	4,204		4,525
Total Inventories	$	22,679	$	24,163

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 January 31, 2020 and July 31, 2019 were $1,362,000 and $704,000, respectively. The higher obsolescence reserve is attributed to our focus on inventory management and enhanced data available from our enterprise resource planning (“ERP”) system.