4.	INVENTORIES

Inventories (at LIFO value) consist of the following as of December 31 (in thousands):


	2018			2017
Finished goods	$	46,638		$	32,986
Raw materials		27,321			19,432

Total FIFO (first-in, first out) inventories		73,959			52,418
Reserve to adjust inventories to LIFO value		(18,442	)		(20,070	)

Total LIFO inventories	$	55,517		$	32,348

Inventory related to the Company’s wood-alternative decking and railing products is stated at the lower of LIFO cost or market. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated market.

Under the LIFO method, reductions in inventory cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs. There was no inventory reduction during 2018 and 2017.

Inventories valued at lower of cost (FIFO method) and net realizable value as of December 31, 2018 and December 31, 2017, consist of $2.3 million and $2.2 million, respectively, of raw materials. The Company utilizes the FIFO method of accounting related to its commercial products.