Inventories

6 Months Ended

Jun. 30, 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):

	June 30, 2020		December 31, 2019
Raw materials	$	9,168	$	10,880
Packaging		2,246		4,109
Non-food finished goods		4,514		4,421
Finished goods		24,580		31,314
Reserve for obsolete inventory		(1,928)		(1,953)
Total	$	38,580	$	48,771