Inventories

3 Months Ended

Oct. 31, 2020

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

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

	October 31, 2020		July 31, 2020
Finished goods	$	14,384	$	14,500
Packaging	4,936		4,587
Other	4,173		4,806
Total Inventories	$	23,493	$	23,893

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 October 31, 2020 and July 31, 2020 were $970,000 and $926,000, respectively. Other Inventories includes a variety of items including clay, additives, fragrances and other supplies. Other inventory decreased due to increased production.