Inventories

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Inventories

4. INVENTORIES

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

	2019			2018
Finished goods	$	42,281		$	46,638
Raw materials		31,686			27,321
Total FIFO inventories		73,967			73,959
Reserve to adjust inventories to LIFO value		(19,062	)		(18,442	)
Total LIFO inventories	$	54,905		$	55,517

Inventory related to Trex Residential composite 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 material inventory reduction during 2019 or 2018.

Inventories valued at lower of cost (FIFO method) and net realizable value as of December 31, 2019 and December 31, 2018, consist of $1.2 million and $2.3 million, respectively, of raw materials. The Company utilizes the FIFO method of accounting related to its Trex Commercial products.