COSTS INCURRED ON UNCOMPLETED CONTRACTS

12 Months Ended

Mar. 31, 2017

COSTS INCURRED ON UNCOMPLETED CONTRACTS

COSTS INCURRED ON UNCOMPLETED CONTRACTS

NOTE 4 - COSTS INCURRED ON UNCOMPLETED CONTRACTS

The following table sets forth information as to costs incurred on uncompleted contracts as of March 31:

	2017		2016
Cost incurred on uncompleted contracts, beginning balance	$	5,491,605	$	4,068,488
Total cost incurred on contracts during the year		12,501,752		12,783,323
Less cost of sales, during the year		(12,454,542)		(11,360,206)
Cost incurred on uncompleted contracts, ending balance	$	5,538,815	$	5,491,605
Billings on uncompleted contracts, beginning balance	$	3,095,963	$	2,060,244
Plus: Total billings incurred on contracts, during the year		18,896,305		17,889,671
Less: Contracts recognized as revenue, during the year		(18,550,674)		(16,853,952)
Billings on uncompleted contracts, ending balance	$	3,441,594	$	3,095,963
Cost incurred on uncompleted contracts, ending balance	$	5,538,815	$	5,491,605
Billings on uncompleted contracts, ending balance		3,441,594		3,095,963
Costs incurred on uncompleted contracts, in excess of progress billings	$	2,097,221	$	2,395,642

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, 2017 and 2016, we had billings in excess of costs totaling $642,831 and $1,629,018, respectively. Billings on uncompleted contracts represent customer prepayments on their contracts and completed contracts on which all revenue recognition criteria were not met.   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 us to offset the progress payments against the costs incurred.