Made a type K item, added a dozen finished goods to the BOM, and then added the kit item to a Sales Order.  
 
First BOM item pulled in correct price
Second item (price $0) pulled in price from first item
Third item (price $0) came in right
Fourth item had right price
Fifth, Sixth, Seventh pulled price of Fourth item
etc.
 
Wacky results. Wassup?