Note 3. Inventories

Inventories are comprised of the following:


	September 30, 2015		December 31, 2014
Raw materials	$	40,543	$	35,191
Work in process		20,519		21,883
Finished goods		31,517		34,395

	$	92,579	$	91,469

Inventories on consignment at customer locations as of September 30, 2015 and December 31, 2014 totaled $3,872 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.