Note 3. Inventories

Inventories are comprised of the following:


	June 30, 2015		December 31, 2014
Raw materials		37,104	$	35,191
Work in process		20,470		21,883
Finished goods		30,354		34,395

		87,928	$	91,469

Inventories on consignment at customer locations as of June 30, 2015 and December 31, 2014 totaled $4,981 and $5,857, respectively.

Inventories are stated at the lower of cost or market. Cost is determined using the average cost method. The inventory valuations above were developed using normalized production capacities for each of our manufacturing locations. Any costs from abnormal excess capacity or under-utilization of fixed production overheads are expensed in the period incurred and are not included as a component of inventory valuation.