Inventory Process for Candle Manufacturing

Companies that manufacture goods have various methods of inventory. Business owners and managers will create processes that ensure proper levels of inventory are on hand for the production process. Candle manufacturing requires a few basic materials that will go through a number of processes during production.

Types

The inventory process begins with the acquisition of raw materials, which includes wax, paraffin, wick materials and other items, depending on the company's production process. Companies may also need scent or color materials to make various types of candles. Chemicals may also be a part of this inventory.

Features

Three inventory groups are common in manufacturing companies: raw materials, work in process and finished goods. Raw materials represent all items not processed by the company; work in process includes partially produced goods; and finished goods are the items ready for sale to consumers.

Function

Candle manufacturers typically use a process-based manufacturing and costing system. Process costing allows companies to generate individual product costs based on the materials that go through the company's production system. It works best for homogenous goods like candles.

References

• Enotes: How Products are Made: Candle
• Business Dictionary: Inventory Process