Construction Contract : Unused material treatment

The construction contract balance represents costs incurred to date of $35 million
less progress billings received of $30 million on a two-year construction contract
that commenced on 1 October 2011. The total contract price has been agreed at
$125 million and Chamberlain Co expects the total contract cost to be $75 million.
The company policy is to accrue for profit on uncompleted contracts by applying
the percentage of completion to the total estimated profit. The percentage of
completion is determined by the proportion of the contract costs to date
compared to the total estimated contract costs. At 30 September 2012, $5 million
of the $35 million costs incurred to date related to unused inventory of materials
on site.

This is one of the adjustments from company accounts questions but can u please provide me with the extracts of treatment of this contract and especially how to treat 5m of unused inventory of materials on site(impact of this 5m on calculating revenue and C.O.S and on the amount due to/from customers) and whether it will be included in closing inventory in statment of financial position.????