A Company Using a Standard Costing System Uses an Actual

Multiple Choice

A company using a standard costing system uses an actual quantity of 1100 kg of material at an actual cost of $1.20 per kg. The standard quantity allowed was 1000 kg at a standard cost of $1.00 per kg. After the goods are completed and transferred from work in process inventory, what is the cost of direct material that would appear in finished goods inventory?

A) $1000
B) $1100
C) $1200
D) $1320