If there is no cost and no quantity on the item (and quantity is allowed to go negative), then the Most Recent Cost is used for the unit cost.

If there is positive qty and zero cost on the item - which really is a problem in how the item has been handled and likely adjusted - then it is probable that the cost will be zero. Anything multiplied by zero will be zero.

If quantity on hand is not allowed to be negative, then the shipment will not allowed to be processed in the first place, so there is no concern of what a potential calculated cost will be.

Is there a particular problem you are running into? If so can you provide some of the specifics as to what program you are shipping items from, the cost that is being generated, the cost you thought you should see, and the precise qty on hand and total cost of the item? Thanks.