cost and estimates gross profit in excess of billing on contracts in progress
Billings in excess of cost is a product of estimating allocated cost and direct cost of a construction contract. This is used in Percentage of Completion basis of financial statement preperation. Billings in excess is liability; Cost in excess of Billings is an asset. Total Contract: $1,000,000. Estimated Cost is $900,000; Estimated Profit is $100,000.