C. Inventories

Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of hops, apple juice, other brewing materials and packaging, are stated at the lower of cost, determined on the first-in, first-out basis, or market. The Company’s goal is to maintain on-hand a supply of approximately two years for essential hop varieties, in order to limit the risk of an unexpected reduction in supply. Inventories are generally classified as current assets. The Company classifies hops inventory in excess of two years of forecasted usage in other long term assets. The cost elements of work in process and finished goods inventory consist of raw materials, direct labor and manufacturing overhead. Inventories consisted of the following:


	December 31,			December 26,
	2016			2015
	(in thousands)
Raw Materials	$	41,630		$	42,123
Work in process		8,131			8,876
Finished Goods		9,054			8,261

		58,815			59,260
Less portion in other long term assets		(6,316	)		(2,798	)

	$	52,499		$	56,462