Cookie Business: In this project, you will be opening your own specialty cookie company to see how product costing methods and changes in production affect business decisions.

Cookie Business

Assignment Objective: In this project, you will be opening your own specialty cookie company to see how product costing methods and changes in production affect business decisions. You will be creating a series of reports and analyzing the results using the template provided to guide you through the project. You will:

1. Gain an understanding of product costing (direct materials, direct labor, and overhead).
2. Review job order costing.
3. Review process costing.
4. Make business decisions based on analyzing accounting data.

Length: You will prepare a three- to four-page written report (including spreadsheets) using the Unit III Project Template.

References: At least two peer-reviewed sources are required. Resources used are required to be scholarly/academic in nature and found in the CSU Library. APA Style is required for citations and references.

Details: First, start the paper with an introduction section per the assignment template provided above.

Part 1: Establish a cookie business selling only one type of specialty cookie with two employees making the cookies.

• Create a name and establish a location for the business.
• Construct a mission statement for the business.
• Decide on the type of cookie you want to make and sell.

Part 2: Develop costing and sales information for 1,000 cookies (this is the first and only order).

• Estimate and explain the cost per cookie based on job order costing (manufacturing overhead is 30% of direct labor costs). Prepare a job order cost sheet by researching and identifying the top five ingredients and their estimated costs as your direct materials.