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Inventories
 12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Inventories
3.
INVENTORIES
Inventories at LIFO value consist of the following as of December 31 (in thousands):
 
    
2020
     
2019
  
Finished goods
    $ 39,048      $ 42,281  
Raw materials
      44,475        31,686  
    
 
 
     
 
 
  
Total FIFO inventories
      83,523        73,967  
Reserve to adjust inventories to LIFO value
      (16,821 )       (19,062 ) 
    
 
 
     
 
 
  
Total LIFO inventories
    $ 66,702      $ 54,905  
    
 
 
     
 
 
  
Inventory related to Trex Residential composite decking and railing products is stated at the lower of LIFO cost or market. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated market.
Under the LIFO method, reductions in inventory cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs. There was
 
no material inventory reduction during 2020 or 2019.
Inventories valued at lower of cost (FIFO method) and net realizable value as of December 31, 2020 and December 31, 2019, were $1.5 million and $1.2 million, respectively, consisting primarily of raw materials. The Company utilizes the FIFO method of accounting related to its Trex Commercial products.