Item Average Cost by Period - PAC Option

Hi All,

We are in Average Costing Org. We have a specific requirement that we need to calculate average cost of all items per period.I have reviewed PAC costing method. I have few questions,may be you can help in getting some pointers.

- What will be the cost of an item (Raw material) if there are no transactions in the current period? Will it be Zero or will it take the last period cost to estimate the cost of FG for WIP issues transactions?

- Am I right in my understanding that, at the start of every period, the Item costs gets reset to Zero.