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COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
 12 Months Ended
Apr. 30, 2014
Costs and Estimated Earnings On Uncompleted Contracts  
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
NOTE 5 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
 
The asset, “Costs and estimated earnings in excess of billings on uncompleted contracts”, represents revenue recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenue recognized. Costs and estimated earnings on uncompleted contracts consist of the following at April 30:
 
 
 
April 30, 2014
 
April 30, 2013
 
 
 
 
 
 
 
 
 
Costs incurred on uncompleted contracts
 
$
14,457,907
 
$
61,281,224
 
Provision for loss on uncompleted contracts
 
 
-
 
 
(11,148)
 
Estimated contract earnings (losses)
 
 
3,291,077
 
 
(1,850,297)
 
 
 
 
17,748,984
 
 
59,419,779
 
Less: Billings to date
 
 
18,766,199
 
 
60,434,797
 
Total
 
$
(1,017,215)
 
$
(1,015,018)
 
 
 
 
 
 
 
 
 
Costs and estimated earnings in excess of billings on uncompleted contracts
 
$
431,348
 
$
329,141
 
Billings in excess of cost and estimated earnings on uncompleted contracts
 
 
1,448,563
 
 
1,344,159
 
Total
 
$
(1,017,215)
 
$
(1,015,018)
 
 
Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which circumstances requiring the revisions become known. During the fiscal year ended April 30, 2013, the effect of such revisions in estimated contract profits resulted in an increase to gross profit of approximately $2,179,000, from that which would have been reported had the revised estimates been used as the basis of recognition for contract profits in the prior year. This increase in gross profit is primarily the result of change orders received of approximately $1,641,000 from the Cooper Project, for costs that were incurred in the prior fiscal year. Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion.