INVENTORIES

Inventories are stated at the lower of cost, determined by the last-in, first-out (LIFO) method, or market.

Inventories consist of the following:



In Thousands	June 30, 2018			December 31, 2017

Raw materials	$	29,809		$	32,928
Work-in-process	20,269			22,753
Finished goods	102,266			88,497
Total Inventory at FIFO cost	152,344			144,178
Adjust to LIFO cost	(55,478		)	(51,813		)
Inventory, net	$	96,866		$	92,365

LIFO pools are established at the end of each fiscal year. During the first three quarters of every year, LIFO calculations are based on the inventory levels and costs at that time. Accordingly, interim LIFO balances will fluctuate depending on those inventory levels and costs.

In the second quarter of 2018, LIFO adjustments were recorded, increasing cost of sales by $1.7 million, versus LIFO adjustments decreasing cost of sales by $0.4 million in the second quarter of 2017. In the first six months of 2018, LIFO adjustments were recorded, increasing cost of sales by $3.7 million, versus LIFO adjustments increasing cost of sales by $4.0 million in the first six months of 2017.

During the first six months of 2018 and 2017, the Company liquidated portions of the LIFO inventory layer in the aluminum wire pool established in prior years. These liquidations had an insignificant effect on the net income of the Company.