Costing project


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Costing project

  1. 1. CONTENTS History of Chocolate  Cost Sheet Process of Making  Analysis Chocolate  Conclusion Ingredients of Chocolate  Biblography Company Profile
  2. 2. History of chocolate• The earliest record of chocolate was over fifteen hundred years ago in the central America rain forests, where the tropical mix of high rain fall combined with high year round temperatures and humidity provide the ideal climate for cultivation of the plant from which chocolate is derived, the cacao tree.• “ Chocolate is made from the cocoa bean, found in pods growing from the trunk and lower branches of the cacao tree, Latin name “ theobroma cacao” meaning “ food of the gods”
  3. 3. Process
  4. 4. Roasting - After being cleaned, the cacao beans pass tothe first critical step in flavor development at the factory:roasting. There are two main approaches to roasting: roastthe beans for a short time at high heat, which produces astrong chocolate flavor but eliminates any subtle, floral notesand risks the development of charred flavors from over-roasting, or roast the beans for a long time at low heat, whichallows the more delicate flavors to come through butsacrifices the big, chocolate flavor.
  5. 5. • Winnowing - Getting Rid of theShells.After roasting, the beans are putthrough a winnowing machine whichremoves the outer husks or shells,leaving behind the roasted beans,now called nibs.• Milling - Making Cocoa LiquorThe nibs are then ground into athick liquid called chocolate liquor,which essentially is cocoa solidssuspended in cocoa butter. Despiteits name, chocolate liquor containsno alcohol.
  6. 6. • Pressing - Cocoa Powder and Cocoa Butter is required. The processing now goes in a couple of different directions. Some batches of chocolate liquor are pressed to extract the cocoa butter, which leaves a solid mass behind that is pulverized into cocoa powder. The remaining cocoa butter is reserved to help in chocolate- making. Other batches of chocolate liquor are used directly to make chocolate.
  7. 7. • The Beginnings of Chocolate -To make dark chocolate, chocolate liquor, sugar and other minor ingredients such as vanilla are mixed together and kneaded until well blended. To make milk chocolate, milk and sugar are mixed together and then blended with chocolate liquor. This sweet combination of ingredients is stirred until the flavors are thoroughly combined.
  8. 8. • Refining — Smoothing It All Out -After being mixed, both dark and milk chocolates go through the same process. The mixture travels through a series of heavy rollers which press the ingredients until the mixture is refined to a dry flake. Additional cocoa butter and a small amount of emulsifying agent are added to the flake and then mixed to make a smooth paste ready for “conching.”
  9. 9. • Conching — Kneading for Exquisite Flavor Conching further develops flavor by putting chocolate through a kneading process. The conches, as the machines are known, have heavy rollers that plow back and forth through the chocolate mass anywhere from a few hours to up to seven days.
  10. 10. • Tempering — Temperature Magic For A Perfect Product - The mixture is then tempered, or passed through a heating, cooling and reheating process. Tempering allows you to solidify chocolate in a way that keeps it glossy, causes it to break with a distinctive snap and allows it to melt smoothly in your mouth.• Moulding — Were Getting Closer The mixture is then poured into moulds and cooled in a cooling chamber.
  11. 11. • Finally — Something We Can Eat! Once cooled, the chocolate is demoulded, packaged for distribution and is ready for savoring.
  12. 12. Ingredients of chocolate• Pure chocolate comes from • Exotic ingredients of chocolate Cocoa beans. A typical GOOBERS CHOCOLATES: chocolate bar will also have: • Sugar • Cocoa Butter• Sugar, • Cocoa Solids• Milk (if its milk • Peanuts chocolate, not if its dark), • Milk Solids• Cocoa Butter, • Chocolate coated Raisins• Lecithin, • Almonds• Flavorings (like vanilla), • Vanilin • Honey• Sometimes, Vegetable Oil • Boston Baked Bean
  13. 13. Company profile The name of the company is Blumenthal Chocolate Company which introduced GOOBERS in 1985 in India. Initially, The Company was dealing in 2-3 types of spices and dry fruits only. But later on it came up with an idea of chocolate coated peanuts with milk chocolate.
  14. 14. • In the year 1992, the CEO of Blumenthal Chocolate Company thought about increasing the profit of the company with some bigger margins and making the company bigger then ever. In the Year 1993 company had introduced the full variety of chocolate like dark chocolate, chocolate enriched with dry fruits etc., and also he started exporting them to neighboring countries. At that time Blumenthal Chocolate Company was the only company who was there in Indian Market with full varieties of dark chocolate, chocolate with dry fruits, wafer chocolate, bar chocolate etc.• In the year 1995, This Company got listed in NSE. Now, in the year 2009, after reading the Indian booming food industry, The Company has decided to launch a new Chocolate (only in Indian market) by the name of “GOOBERS”.
  15. 15. COST SHEETParticulars Cost per unit Total costRaw materialSugar = 3,00,000Cocoa Butter= 3,00,000Cocoa Solids = 3,20,000Peanuts = 2,00,000Milk Solids = 2,00,000Chocolate Coated Rasins= 4,00,000Almonds= 3,00,000 5.16 23,20,000Vanilin= 1,00,000Honey= 50,000Boston Baked Bean= 1,50,000Direct Labour= 7,00,000 1.56 7,00,000Carriage on Material= 2,42,500 0.53 2,42,500Prime Cost:- 7.25 32,62,500
  16. 16. Factory expenses:-Fixed –Depreciation on Plant andMachinery= 2,57,500Rent= 1,50,000Power and ConsumableStores= 1,50,000Factory Insurance= 1,50,000 2.35Supervisors Salary= 50,000Variable –Electricity Charges= 50,000Power and ConsumableStores= 1,00,000Running Expenses ofMachine= 1,50,000 9.60 43,20,000Factory Cost:-
  17. 17. Office and AdministrationExpensesOffice staff salary= 10,00,000Rent= 80,000Computer= 1,20,000Furniture= 3,00,000Telephone= 10,000Carriage outward= 20,000Depreciation on furniture=50,000Salaries to administrativestaff= 3,70,000Rent, rates, and taxes=30,000Office and AdministrationCost:-
  18. 18. Analysis The company is producing 4,50,0000 units of chocolates at the rate of Rs. 16 for which we are incurring the total cost of Rs. 72,00,000 and the total sales of Rs. 90,00,000 which implies that we are having the profit of Rs. 18,00,000. The company is producing a single unit of chocolate at the rate of Rs. 20which includes the cost of chocolate as Rs. 16 which again implies that the profit of Rs. 4 is gained on the single unit of chocolate. Since the company is earning some percentage of profit above the cost it means increasing cost can be the favorable condition for the company. Since the company is earning some amount of profit so the business is a feasible to launch over.
  19. 19. Biblography•••••••
  20. 20. Credits• We thank Professor Iyenger for giving us this wonderful opportunity to explore the world of costing. We have highly benefitted ourselves and we hope to get many more such opportunities. THANK YOU…..!!!