In DBA, we have some items that were manufactured on a shop work order.  
They were costed and closed, but the work order is made to shop (i.e. expensed).  
 
We would like to count the items and input them as inventory (they were not stocked before but we would like to add them to stock).  
 
Is  there a way to add to inventory and take away from shop expense?

If the posting is turned on, the adjustment will make its own accounting entry but it will post between Inventory and COGS based on the item class so you may need to change hte expense account it posts to.

IN-K makes the same GL posting as IN-C, there is no difference.

But that puts the items into stock at $0 which is not the intent.