Inventories

6 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 3 - INVENTORIES

The inventories consist of the following:

	December 31, 2019			June 30, 2019
Raw materials	$	609,963		$	974,639
Work-in-process		1,177,110			651,769
Finished goods		1,936,918			1,533,318
Less: inventory reserve		(1,105,948	)		(944,167	)
Total	$	2,618,043		$	2,215,559

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.