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Costs and Estimated Earnings on Uncompleted Contracts | 6 Months Ended
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Jun. 30, 2014
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Costs and Estimated Earnings on Uncompleted Contracts |
4. | Costs and Estimated Earnings on Uncompleted Contracts
Revenues from contracts are recognized on the percentage of completion method, measured by the percentage of contract costs incurred to date compared to estimated total contract costs for each contract. This method is used because management considers contract costs to be the best available measure of progress on these contracts. Revenues are also recognized on a completed contract basis, when risk and title passes to the customer, which is generally upon shipment of product. Our contracts have various lengths to completion ranging from a few days to several months. We anticipate that a majority of our current contracts will be completed within the next twelve months.
|  | June 30, 2014 |  |  | December 31, 2013 |
Costs incurred on uncompleted contracts |  | $ | 65,636 |  |  | $ | 61,416 |
Estimated earnings |  |  | 21,036 |  |  |  | 21,505 |
|  |  | 86,672 |  |  |  | 82,921 |
Less billings to date |  |  | (82,776 | ) |  |  | (85,297 | )
|  | $ | 3,896 |  |  | $ | (2,376 | )
Included in the accompanying consolidated balance sheets under the following captions: |  |  |  |  |  |  |  |
Costs and estimated earnings in excess of billings on uncompleted contracts |  | $ | 15,215 |  |  | $ | 11,110 |
Billings in excess of costs and estimated earnings on uncompleted contracts |  |  | (11,319 | ) |  |  | (13,486 | )
|  | $ | 3,896 |  |  | $ | (2,376 | )

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