Sorry, I'm not completely following:
A. there is only one location in use. "1" is in the Loc field. Under Item Inquiry nothing looks out of order in the Quantities screen. I'm not sure what we're looking for.

B. From our side we don't see values of any kind under the Item Inquiry screen. Are you perhaps referring to the "Item Inquiry with Sales and Costs" screen?
If so, valuations are found in the "Costing" screen (tab).
In the Costing screen 5 locations are listed, with only Lot 1 having quantities and values. (Why does this screen refer to this as Lot?) If you provide your e-mail we can send an image.

Here's something to try. Use the Item Inquiry function and open up an item. Go to the Quantities screen. This shows the quantities allowed at each location and the respective values.

We've seen data corruption in the ICILOC file cause problems with reports such as the Item Valuation. It was a different error than what you reported. PErhaps run a Data Integrity Check on your data, just to be sure.

6/26 DIC is showing numerous errors with I/C, but no problems with locations. (pasted from DIC)
Application Integrity Phase

Loading Account Sets ... OK
Loading Locations ... OK <-- **
Loading Categories ... OK
Loading Price Lists ... OK
Loading Tax Groups ... OK
Company Profile ... Checked OK

The problems all have to do with pricing and costing units: eg.
Item XX/XXX-FG350 pricing unit is not valid.
Item XX/XXX-FG350 costing unit is not valid.


See this previous posting here for more information.
Corrupt ICILOC data file