hi Doug
Residual cost for items with zero quantity is the last item that appears on the item valuation report before the report total. Residual cost is the amount left under the item that was not allocated to cost of goods sold. it can be a relevant value that needs reallocation. Anyway, it's part of your inventory total amount and should be.

If this report was a spreadsheet it would look like the last cell was missed when summed.

believe me guys something has changed