Material Cost from Expense Inventory

Our customer maintains two inventories, one where the items are expensed and one where the items are received into inventory at average cost. Both carry  some of the same items in inventory.  I am being told that when items are being issued from the expense inventory that they are coming into the Work Order at average cost, even though the items were expensed at receipt so there is no average cost for them in that inventory. Does that make sense. My assumption is that they would come in at zero cost.

Thank You,

Bob