Table:
|  | March 31, |  |
| --- | --- | --- |
|  | 2019 | 2018 |
| Raw materials | $74.5 | $26.0 |
| Work in process | 413.0 | 311.8 |
| Finished goods | 224.2 | 138.4 |
| Total inventories | $711.7 | $476.2 |
Paragraphs:
Inventories
The components of inventories consist of the following (in millions):
Inventories are valued at the lower of cost and net realizable value using the first-in, first-out method. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable.
Question:
How were inventories valued at the lower of cost and net realizable value?
Answer: using the first-in, first-out method.