INVENTORIES

The composition of inventories is as follows (in thousands):



	April 30, 2018		July 31, 2017
Finished goods	$	15,133	$	14,704
Packaging	5,693		4,988
Other	2,589		2,923
Total Inventories	$	23,415	$	22,615

Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considered specific items, but also took into consideration the overall value of the inventory as of the balance sheet date. The inventory obsolescence reserve values at April 30, 2018 and July 31, 2017 were $1,136,000 and $619,000, respectively. The reserve increased due to higher levels of discontinued, slow moving and unsaleable inventory.