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 prepare a four- to five-page written report (including spreadsheets) with at least three scholarly
sources using the Unit II Project Template. Your report will provide the following information:
Introduction
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.
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. Research and identify the cost of wages for your two

employees as your direct labor. It typically takes two days to make 1,000 cookies.
Estimate and explain the cost per cookie based on process costing with 40% conversion costs. Identify the

top three processes you feel are needed to make the cookies and prepare a production cost sheet for one

of those processes.
Estimate and explain the sales price you plan to set per cookie based on the cost data.
Part 3: Compare and contrast the costing methods used in this project, including which you believe

provides the most useful information as a manager.
Part 4: Discuss what will happen to revenue if the number of the cookies sold increases or decreases.
Conclusion and Recommendations