Inventories

9 Months Ended

Sep. 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):

	September 30, 2020		December 31, 2019
Raw materials	$	13,702	$	10,880
Packaging		2,761		4,109
Non-food finished goods		6,031		4,421
Finished goods		20,650		31,314
Reserve for obsolete inventory		(1,408)		(1,953)
Total	$	41,736	$	48,771