Inventories

Inventories consist of:



	June 30, 2019		September 30, 2018
Raw materials and supplies	$	5,477	$	6,202
Work-in-process	3,203		6,626
Finished goods	3,264		5,441
Total inventories	$	11,944	$	18,269

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the LIFO method for 37% and 54% of the Company’s inventories at June 30, 2019 and September 30, 2018, respectively. As noted in Note 1, Summary of Significant Accounting Policies - Recently Adopted Accounting Standards, the LIFO reserve was impacted by the adoption of the new revenue standard. An actual valuation of inventory under the LIFO method is made at the end of each fiscal year based on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because the actual results may vary from these estimates, calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to adjustments based on the differences between the estimates and the actual results. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories. If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $8,469 and $8,879 higher than reported at June 30, 2019 and September 30, 2018, respectively.

Since adopting the new revenue standard, interim results show a reduction of inventory resulting in liquidations of LIFO inventory quantities. The estimated liquidation of LIFO inventory quantities results in a projected increase in cost of goods sold by approximately $210 for the nine months ended June 30, 2019. These inventories were carried in prior periods at the then prevailing costs, which were accurate at the time, but differ from the current manufacturing cost and/or material costs.