Chocolate Manufacturing Inventory

Inventory comprises one of the largest assets owned by chocolate manufacturing companies. There are three types of inventory for a typical manufacturing company which consists of raw material inventory, work in progress inventory and finished goods inventory. A production process is to convert raw material inventory through a series of production processes into finished goods inventory. The most significant raw materials to be used in chocolate manufacturing company are cocoa beans, sugar, milk and flavouring agents. In production stage, it is important to make sure that raw materials are provided and made into finished goods. The responsibility of a production manager in chocolate manufacturing company is to ensure that finished goods are

As for the milk chocolate, plain chocolate and white chocolate in Divine Chocolate Company each have slightly different raw materials needed in their manufacturing process. For milk chocolate, cocoa butter and cocoa mass are combines in varying proportions and sugar and full cream milk are added to add the flavour of the chocolate taste. Besides, plain chocolate uses the same process but is a mixture of sugar, cocoa mass and cocoa butter without milk. Furthermore, for white chocolate, it is made up of milk, sugar, cocoa butter and this does not contain cocoa powder. A crumb is formed from the resulting mixture which is ground with more cocoa butter then beaten in a process called conching which produce a smooth and silky texture

Production department has to ensure that inventories are physically safeguarded and inventory balance is materially correct. Although physical inventory count does not safeguard the inventory from loss or theft, if it performs well in a timely manner and an effective way, it will prevent material misstatement to inventory related account balances on the financial statements.

For instance, the storage of raw materials and finished goods inventories in locked warehouses with access restricted to authorized individual is important in safeguarding the inventories. Hence, CCTV can be placed in the production, parking and other key areas. On the other hand, in terms of work in progress inventories, it should be facilitated through the observations at production area such as the supervisory and plant security employees and classification of goods. Pre-numbered move tickets can be used to control the transfer of work in progress through the plant as it is a notice authorizing the physical movement of work in process between production departments and finished