Thanks Rustler,

I am in a similar situation (BBQ Sauce not cookies) but your explanation is not computing, my fault I just don't understand. 

1. When you have made 100 cookies how do you put them in inventory (and assign a cost to them)? 

2. How do you handle COG for tax purposes?

3. I have to bottle and label my sauce, would those items be expensed as well?

4. I am starting to make and sell sandwiches, I made a non inventory item 'concessions' and create an invoice for that item, is that correct? ( I assume I need a corresponding expense account 'concessions' if not let me know).

Thanks in advance!  it's much appreciated.