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Note 3: Costs and Estimated Gross Profi t on
Contracts in Progress
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Costs and estimated gross profi t on construction contracts in progress related billings as follows:
Costs incurred to date on contracts in progress $ 72,316,000
Estimated gross profi t to date 3,290,000
Contract revenue earned to date 75,606,000
Less billings to date (77,932,000)
Excess of billings over revenue earned $ (2,326,000)
The excess of billings over revenue earned is included in the accompanying balance sheet under the following
captions:
Costs and estimated gross profi t in excess of billings
on contracts in progress
$ 106,000
Billings in excess of costs and estimated gross profi t
on contracts in progress
(2,432,000)
Excess of billings over revenue earned $ (2,326,000)
The revenue in excess of billings primarily relate to the Company's rights to consideration for work completed
but not billed at the reporting date. The revenue in excess of billings balances are transferred to receivables
when the rights become unconditional. The billings in excess of revenue primarily relate to the advance consid-
eration received from customers, for which revenue has not yet been recognized.
Signifi cant changes in revenue in excess of billings and billings in excess of revenue balances during the period
are as follows.
Revenue in
Excess of Billings
Billings in
Excess of Revenue
Balance, December 31, 2017 $ 375,000 $ 6,500,000
Revenue recognized that was included in contract liability balance
at beginning of period
(5,500,000)
Increases due to cash received, excluding amounts recognized
as revenue during the period
1,432,000
Increases due to revenue recognized prior to billings 2,500,000
Transferred to receivables from revenue in excess recognized
at the beginning of the period
(2,769,000)
Balance, December 31, 2018 $ 106,000 $ 2,432,000
