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Uninstalled Materials (Sample Abbreviated Contract Schedule )
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Uninstalled
Materials
Example
Revenue
Billings
Unamortized
Contract
Estimated
Estimated
Contract
Costs
Gross
Billed
Earned
in
Excess
Cost
of
Unamortized
Transaction
Cost
at
Gross
Percent
Revenue
Incurred
Profi
t
to
in
Excess
of
Revenue
Obtaining
Fulfi
llment
Value
Completion
Profi
t
Complete
Earned
to
Date
Earned
Date
of
Billings
Earned
Contract
Cost
Contract
A
$15,000,000
$12,000,000
$3,000,000
25.00%
$3,750,000
$3,000,000
$
750,000
Contract
A
Unistalled Materials
3,000,000
3,000,000
-
66.67%
2,000,000
2,000,000
-
Total Contract
A
$18,000,000
$15,000,000
$3,000,000
$5,750,000
$5,000,000
$
750,000
$6,000,000
$
250,000
$
60,000
$
420,000
Note:
Contract
A
has
a
single
performance
obligation.
Note:
Control
of
uninstalled
materials
has
passed
to
owner
so
materials
cannot
be
classifi
ed
as
inventory
on
the
balance
sheet.
Note:
Percent
complete
is
measured
on
the
cost-to-cost
method.
Note:
Company
plans
to
have
a
total
of
$3
Million
in
uninstalled
materials
over
the
course
of
the
contract
but
has
acquired
$2
Million
to
date.
Note:
No
need
to
allocate
billings.
ASC
606
allows
only
one
(1)
contract
asset
at
the
contract
level.
Contract
is
90%
Complete
and
Materials
are
Installed
Contract
A
$15,250,000
$12,600,000
$2,650,000
87.62%
$13,361,905
$11,040,000
$2,321,905
Contract
A
Uninstalled Materials
3,000,000
3,000,000
-
100.00%
3,000,000
3,000,000
-
Total Contract
A
$18,250,000
$15,600,000
$2,650,000
$16,361,905
$14,040,000
$2,321,905
$16,000,000
$
361,905
$
8,000
$
60,000
Note:
Once
costs
are
segregated
to
uninstalled
materials
they
never
allocate
back
to
the
contract
percentage
of
completion
calculation
for
recognizing
gross
profi
t.
