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5. INVENTORY | 6 Months Ended | 12 Months Ended
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Jun. 30, 2018 | Dec. 31, 2017
Notes to Financial Statements |  |
INVENTORY | Inventories are stated at the lower of cost or net realizable value. Costs are determined using the first in- first out (FIFO) method. Inventory consists approximately of the following:
|  | June 30, |  |  | December 31, |
|  | 2018 |  |  | 2017 |
Finished Goods |  | $ | – |  |  | $ | 1,716,141 |
Work in Process |  |  | 559,013 |  |  |  | 311,481 |
Raw Materials |  |  | 341,578 |  |  |  | 300,479 |
Inventory Allowance |  |  | (8,601 | ) |  |  | (8,601 | )
Total Inventory |  | $ | 891,990 |  |  | $ | 2,319,500 |
| Inventories are stated at the lower of cost or net realizable value. Costs are determined using the first in- first out (FIFO) method. As of December 31, 2017 and 2016, inventory consists of the following:
|  | December 31, 2017 |  |  | December 31, 2016 |
Finished goods |  | $ | 1,716,141 |  |  | $ | 22,375 |
Work in process |  |  | 311,481 |  |  |  | 164,915 |
Raw materials |  |  | 300,479 |  |  |  | 93,113 |
Inventory reserve |  |  | (8,601 | ) |  |  | (8,601 | )
Inventory, net |  | $ | 2,319,500 |  |  | $ | 271,802 |

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- Definition The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -URI http://asc.fasb.org/topic&trid=2126998 + Details
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