I think learnandsay is being a bit harsh here. I suspect you simply want your DD to move on and it sounds like you've taken matters into your own hands at home. However, I'm not clear whether you've been given a list of 100 key words (which can be quite typical and is sincerley quite a lot of work) or whether you've been given a list of say 8 - 10 words (which is what my DDs have been working to).
If the situation is the former (a list of the first 100 key words) - then perhaps what you need to be looking into is whether she consistently spells them in her written work and understands their meaning - this may be where the problem is.
If the issue is that you started with a small list of words (say 8 words) and haven't progressed from there then personally I'd raise this with the head, since you have already raised this with the teacher. You should feel very confident that most schools simply give a new list each week - and some schools occasionally give grand review spelling tests (reviewing all words to date) and end of term or sometimes just at end of year.
Although my DD1 could spell 'with' or 'Mrs' from the first 100 key word list for the test - she consistently would spell 'whith' and 'Misses' in her writing work at school or in her reading diary. If this is your DD's situation - than the teacher may be correct in thinking she hasn't mastered these first 100 key words. For whatever reason DD1 could learn them short-term for a test, but not retain them. That really hasn't clicked in until late Y2/ early Y3 (but DD1 was working slightly 'below expectations').
However, it may be that spelling isn't a serious component of Y1 work - but is only being introduced in preparation for Y2. Certainly at our school spellings were not introduced until after Easter Y1 and then became a regular weekly feature and carried on weekly in Y2.
I wouldn't get angry - but you are confused and are more than entitled to understand what the purpose of this spelling list (long or short) is, so that you can better support learning at home.
HTH