Inventory	9 Months Ended
Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventory	9. Inventory Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence. If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of March 31, 2022 and June 30, 2021, the balance for the inventory totaled $527,212 and $441,582, respectively. $0 was reserved for obsolescent inventory for the period ended March 31, 2022, and $0 were reserved for obsolescent inventory for the year ended June 30, 2021. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022

Inventory

9 Months Ended

Mar. 31, 2022

9. Inventory

Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence.

If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of March 31, 2022 and June 30, 2021, the balance for the inventory totaled $527,212 and $441,582, respectively. $0 was reserved for obsolescent inventory for the period ended March 31, 2022, and $0 were reserved for obsolescent inventory for the year ended June 30, 2021.

Sugarmade, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

March 31, 2022