Work in progress

I have some questions? Can you tell me that what is work in progress and how different is it work in process? Is it accounted for in current or non current assets? And how do we treat a cancelled work in progress in which we have a contract to design and produce a machine which will take 18 months but we worked on it for 5 months and incurred cost and received payments for that time however the contract was cancelled after 5 momths. So how do we treat this case in statement of pnl and financial position and plz do tell me how will we treat the work in progress recorded in asset section?