Cycle count entry cost issue

The cycle count entry program allows for changing out the location when a specific lot number is found in a different location than originally assigned. 

The problem occurs when I have the same item number 12345 and lot #1 with a unit cost of $2 ea and qty of 10 at location A.100.22 when the lot number is found in location B.100.25. 

We zero count the first location and count 10 in the new location B.100.25.  The lot costing for inventory is set to 02 (average costing).

The new record has the same lot # and item number with an entered qty of 10 at location B.100.25

I expected the lot cost to follow the item to the new location as all 02 costs are set up to be lot # item specific. There are NO duplicate lot numbers allowed.