Contracts in Process

12 Months Ended

Jun. 30, 2019

Contractors [Abstract]

Contracts in Process

Note 5. Contracts in Process

Contracts in process at June 30, 2019 and 2018 are as follows:

	2019		2018
Unrecognized gross contract value	$	45,552,562	$	48,100,984
Costs related to contracts in process	$	11,069,558	$	8,880,003

Included in costs relating to contracts in process at June 30, 2019 and 2018 are costs of $2,740,804 and $1,602,827, respectively, relative to contracts that may not be completed within the ensuing year. Under the units-of-delivery method, the related sale and cost of sales will not be reflected in the statements of comprehensive income until the units under contract are shipped.

Gross profit for the year ended June 30, 2019 was negatively impacted by the change in estimate on two separate contracts for the design and production of power transformers. The increase in direct costs, material and labor, approximated $1.1 million. The net increase in direct costs is attributable to in process design changes required to meet contract specifications, changes to the bill of materials and operations, and scrap and other costs incurred typically associated with first time builds.