Inventories

12 Months Ended

Dec. 31, 2019

Inventories [Abstract]

Inventories

3. INVENTORIES

Inventories consist principally of packaged meal replacements held in the Company’s warehouses. Inventory is stated at the lower of cost or net realizable value, utilizing the first-in, first-out method. The cost of finished goods includes the cost of raw materials, packaging supplies, direct and indirect labor and other indirect manufacturing costs. On a quarterly basis management reviews inventory for unsalable or obsolete inventory.

Inventories consisted of the following (in thousands):

	December 31, 2019		December 31, 2018
Raw materials	$	10,880	$	11,156
Packaging		4,109		1,563
Non-food finished goods		4,421		2,391
Finished goods		31,314		25,509
Reserve for obsolete inventory		(1,953)		(1,731)
Total	$	48,771	$	38,888