Inventories

3 Months Ended

Mar. 31, 2020

Inventories [Abstract]

Inventories

2. 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):

	March 31, 2020		December 31, 2019
Raw materials	$	10,186	$	10,880
Packaging		3,166		4,109
Non-food finished goods		4,639		4,421
Finished goods		32,041		31,314
Reserve for obsolete inventory		(2,149)		(1,953)
Total	$	47,883	$	48,771