XYZ Company reported 10,000 units of Product X valued at $1,200,000 in its ending cost of goods sold account. Accounting records indicated that XYZ had 4,000 hours of direct labor valued at $100,000 and 60,000 machine hours in its cost of goods sold account. Earlier in the year, ABC established a predetermined overhead rate equal to $10 per machine hour. What is the total dollar amount of material cost that comprises the $1,200,000 of XYZs cost of goods sold account?

a	$1,100,000

b	$1,060,000

c

$ 500,000

d

$ 100,000

e

$50,000