NOTE 4 - COSTS INCURRED ON UNCOMPLETED CONTRACTS
The following table sets forth information as to costs incurred on uncompleted contracts as of March 31:
|
|
|
2013 |
|
2012 |
| ||
|
Cost incurred on uncompleted contracts, beginning balance |
|
$ |
10,879,743 |
|
$ |
7,958,153 |
|
|
Total cost incurred on contracts during the year |
|
21,215,441 |
|
31,104,174 |
| ||
|
Less cost of sales, during the year |
|
(25,914,345 |
) |
(28,182,584 |
) | ||
|
Cost incurred on uncompleted contracts, ending balance |
|
$ |
6,180,839 |
|
$ |
10,879,743 |
|
|
|
|
|
|
|
| ||
|
Billings on uncompleted contracts, beginning balance |
|
$ |
6,969,717 |
|
$ |
5,104,301 |
|
|
Plus: Total billings incurred on contracts, during the year |
|
27,385,748 |
|
35,132,194 |
| ||
|
Less: Contracts recognized as revenue, during the year |
|
(32,472,919 |
) |
(33,266,778 |
) | ||
|
Billings on uncompleted contracts, ending balance |
|
$ |
1,882,546 |
|
$ |
6,969,717 |
|
|
|
|
|
|
|
| ||
|
Cost incurred on uncompleted contracts, ending balance |
|
$ |
6,180,839 |
|
$ |
10,879,743 |
|
|
Billings on uncompleted contracts, ending balance |
|
1,882,546 |
|
(6,969,717 |
) | ||
|
Costs incurred on uncompleted contracts, in excess of progress billings |
|
$ |
4,298,293 |
|
$ |
3,910,026 |
|
Contract costs consist primarily of labor and materials and related overhead, to the extent that such costs are recoverable. Revenues associated with these contracts are recorded only when the amount of recovery can be estimated reliably and realization is probable.
As of March 31, 2013 and 2012, we had deferred revenues totaling $253,813 and $799,413, respectively. Deferred revenues represent customer prepayments on their contracts and completed contracts on which all revenue recognition criteria were not met. We record provisions for losses within costs of sales in our consolidated statement of operations and comprehensive (loss) income. We also receive advance billings and deposits representing down payments for acquisition of materials and progress payments on contracts. The agreements with our customers allow tusto offset the progress payments against the costs incurred.