You plant them on the sides of Jungle trees
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It has to be planted in the jungle or grab some jungle wood and plant it there in the jungle wood (not jungle wood planks)
They have to be planted on jungle trees or by cutting down the jungle trees and placing the wood blocks on the ground. You have to have the cocoa beans in your hand, then you right click on the side of the wood. You can place it on all 4 sides if you want to. Jungle wood is easily found were there is 2x2 block trees in the jungle biome.
You can craft cookies with cocoa beans by putting cocoa beans in between 2 wheat in a crafting table.
Cookies
Crafting Recipe: --------------- Wheat, Cocoa Beans, Wheat