For this component, you will prepare a four-to-five-page written report (includi

For this component, you will prepare a four-to-five-page written report (including the
spreadsheets, which should be incorporated into your paper), with at least
three scholarly sources using the Unit II Project
You will create a report based on the premise
that you want to establish a cookie business that sells only one type of
specialty cookie with two employees. Your report will provide the following

Introduction (Part 1)
o Create a name and establish a locale for the business.
o Construct a mission statement.
o Decide on the type of cookie you want to sell.
• Costing
and Sales Information, Production of 1,000 cookies (Part 2)
o Estimate and explain the costs per cookie based on job order
costing. Prepare a job order cost sheet by
researching the pricing for these
top five ingredients: butter, sugar, vanilla, flour, chips/add-ins.
▪ Manufacturing overhead is
30% of direct labor costs.
▪ It will take two employees
working two days to make 1,000 cookies.
o For process costing, you will examine the costs per 1,000
cookies looking at these top three processes (departments): Mixing, Add-ins,
and Packaging.
▪ The Mixing Department will
be examined in depth.
• Materials will be added at the
beginning of the process.
• The cookies will be in the Mixing Department for a total of eight
hours; however, the cookies will only be 40% complete before they are
transferred to the Add-ins
Department. (Use this % for conversion costs.)
o Using the job-order costing
system, determine the costs and sales price of your cookies.

Differences between two-process cost systems (Part 3)
o Compare and contrast the cost methods examined in this project.
Discuss using the information created, which costing method in this example,
gives more complete costing information, and why.
o Discuss product costs and
conversion costs and their importance in both costing systems.
• Variances
in production – Costs and Revenues (Part 4)
o Examine the variances in both the job order costing and process
costing (for the Mixing Department only) systems if the number of your cookies
was to decrease to 500 cookies or increase to 1,500 cookies.
o Examine
the effect on revenue these two variances in production would have.
• Conclusion (Part 5)
Use the Unit II Cookie
Project Spreadsheet Templates for your costing systems and
embed them into your case study document.
For your
paper, be sure to use APA formatting throughout, and reach out to the Writing
Center or the CSU Online Library for assistance with research, writing, and
formatting. Include at least two of the three resources from the CSU Online
Library or academic/scholarly sources in your report.