Inventories

3 Months Ended

Mar. 31, 2023

Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. The Company evaluates and adjusts as necessary its excess and obsolescence reserve on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consist of the following:


	March 31, 2023		December 31, 2022
Raw materials	$	132,302	$	121,983
Work-in-progress	9,414		7,812
Finished goods	26,985		22,785
Total inventories, net	$	168,701	$	152,580

Inventory valued using the FIFO method was $154,203 and $139,996 at March 31, 2023 and December 31, 2022, respectively. Inventory valued using the average cost method was $14,498 and $12,584 at March 31, 2023 and December 31, 2022, respectively.