company has leased a mine, from which it recently extracted 1000 kilograms of bauxite . The company plans to sell the bauxite to aluminum manufacturers. The company is analyzing whether its bauxite inventory can be carried at its selling price per ASC 330-10-35-16(b). Assume that quoted market prices are generally available for bauxite, and that the market for bauxite is active.

using the standard memo format,analyze whether all necessary conditions are met for the accounting treatment proposed. if assumptions are needed to fully evaluate the guidance, identify those assumptions in your analysis.