Inventory costs consist of the amount paid to acquire inventory, net of vendor consideration and purchase discounts, the cost of equipment added, reconditioning costs, and transportation costs relating to acquiring inventory for sale. We state new and used boat, motor, and trailer inventories at the lower of cost, determined on a specific-identification basis, or net realizable value. We state parts and accessories at the lower of cost, determined on an average cost basis, or net realizable value. We utilize our historical experience, the aging of the inventories, and our consideration of current market trends as the basis for determining a lower of cost or net realizable value. We do not believe there is a reasonable likelihood that there will be a change in the future estimates or assumptions we use to calculate our valuation allowance which would result in a material effect on our operating results. As of September 30, 2020 and June 30, 2021, our valuation allowance for new and used boat, motor, and trailer inventories was $2.4 million and $0.6 million, respectively. If events occur and market conditions change, causing the fair value to fall below carrying value, the valuation allowance could increase.

(Amounts in thousands)	As of September 30, 2020		As of June 30, 2021
New and used boats, motors, and trailers	$	289,291	$	177,743
Parts, accessories, and other		8,711		11,838
Work-in-process		-		10,108
Raw materials		-		9,729
Total inventories	$	298,002	$	209,418