Can you use Valuation Unit of Serial when Item is set to serialize at WO Issue/SO Entry?

Valuation Unit on items are set to Cost Org-Inv Org-Serial for all items in the inventory organization, however some of these items are set with the Serial Entry setting on the item as 'Entry at Sales Order, Transfer Order, or Work Order Issue'. When items are received, they are not serialed, but are then serialed upon WO issue, however the costing is erroring with the error 'The outgoing inventory transaction couldn't be costed because there's no layer cost for the item' for the WO issues of the issued items which have been serialed at time of issue. The