The answer to the issue memo is incomplete.

You are a plant accountant for Kelly Corp. You have been asked to draft a brief (1 to 1.5 page) issues memo ("to the files") documenting the accounting for the following issue.

Kelly Corp. has leased a mine from which it recently extracted 1,000 kilograms of bauxite (a mineral that can be used to make aluminum). Kelly Corp. plans to sell the bauxite to aluminum manufacturers. Kelly Corp. 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.