Note 6: Inventories

We compute inventory cost on a first-in, first-out basis. Costs incurred to manufacture our products are included in the valuation of inventory beginning in the quarter in which a product meets the technical criteria to qualify for sale to customers. Prior to qualification for sale, costs that do not meet the criteria for research and development (R&D) are included in cost of sales in the period incurred. Inventories at the end of each period were as follows:



(In Millions)	Apr 2, 2016		Dec 26, 2015
Raw materials	$	628	$	532
Work in process	2,980		2,893
Finished goods	2,143		1,742
Total inventories	$	5,751	$	5,167