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Inventories, net

6 Months Ended

Apr. 15, 2022

Note 2 – Inventories, net

Inventories are comprised of the following at the respective period ends:

Schedule of Inventories

	April 15, 2022		October 29, 2021
Meat, ingredients, and supplies	$	9,868	$	7,278
Work in progress		3,229		2,911
Finished goods		27,838		26,582
Inventories, net	$	40,935	$	36,771

Inventories are valued at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. Inventories include the cost of raw materials, labor, and manufacturing overhead. We regularly review inventory quantities on hand and write down any excess or obsolete inventories to net realizable value. An inventory reserve is created when potentially slow-moving or obsolete inventories are identified in order to reflect the appropriate inventory value. Changes in economic conditions, production requirements, and lower than expected customer demand could result in additional obsolete or slow-moving inventory that cannot be sold or must be sold at reduced prices and could result in additional reserve provisions. We reduced our net realizable value reserve by $2,159 during the twenty-four weeks ended April 15, 2022, to recognize inventory sell through of products already reserved in inventory as of year-end October 29, 2021. We maintain a net realizable reserve of $194 as of April 15, 2022, and $2,353 as of October 29, 2021, on products in inventory after determining that the market value on some meat products could not cover the costs associated with completion and sale of the product.