Inventories, net

6 Months Ended

Apr. 18, 2025

Note 2 – Inventories, net:

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

Schedule of Inventories

	April 18, 2025		November 1, 2024
Meat, ingredients, and supplies	$	11,794	$	10,314
Work in progress		5,251		2,633
Finished goods		23,010		20,391
Inventories, net	$	40,055	$	33,338

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 estimated excess, obsolete inventories, or impaired balances 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. The reserve for slow moving and obsolete inventory was $1,201 as of April 18, 2025 and $1,115 as of November 1, 2024. We maintain a net realizable value reserve of $1,804 as of April 18, 2025, and $1,467 as of November 1, 2024, 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.

BRIDGFORD FOODS CORP 10-Q