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INVENTORIES, NET
 9 Months Ended
Mar. 31, 2023
Inventory Disclosure [Abstract]  
INVENTORIES, NET

NOTE 5 – INVENTORIES, NET

 

The inventories, net consisted of the following:

 

  

March 31,

2023

  

June 30,

2022

 
         
Raw materials  $516,753   $67,467 
Work-in-process   18,367,116    18,709,325 
Finished goods   1,541,746    1,191,275 
Less: inventory reserve   (1,431,963)   (1,249,543)
Total inventories, net  $18,993,652   $18,718,524 

 

Work-in-process includes direct costs such as seed selection, fertilizer, labor cost, and subcontractor fees that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of the prepayment of the farmland lease fees and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to harvested crop costs when they are sold.

 

The Company wrote off inventory amounted to US$668,088 and US$1,303,312 during the nine months ended March 31, 2023 and 2022, respectively. The Company wrote off inventory amounted to US$205,152 and US$401,731 during the three months ended March 31, 2023 and 2022, respectively. It was due to the continuous impact from the COVID-19 pandemic which resulted in the damage and death of a large number of yew trees.