2 Significant Accounting Policies: Inventories, Net (Policies)	12 Months Ended
Jun. 30, 2016
Policies
Inventories, Net	*Inventories, net* Inventories are stated at the lower of cost, determined using the weighted average cost method, and net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose. The Company wrote-off $118,846 of obsolete inventory during the year ended June 30, 2016. The Company charged $108,601 against the allowance for obsolete inventory during the year ended June 30, 2015. For the years ended June 30, 2016 and 2015, the Company’s allowance for obsolete inventory is $584,674 and $633,948, respectively.

2 Significant Accounting Policies: Inventories, Net (Policies)

12 Months Ended

Jun. 30, 2016

Inventories, net

Inventories are stated at the lower of cost, determined using the weighted average cost method, and net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose. The Company wrote-off $118,846 of obsolete inventory during the year ended June 30, 2016. The Company charged $108,601 against the allowance for obsolete inventory during the year ended June 30, 2015. For the years ended June 30, 2016 and 2015, the Company’s allowance for obsolete inventory is $584,674 and $633,948, respectively.

AOXING PHARMACEUTICAL COMPANY, INC. 10-K