Found a simple Tutorial on vector.tutsplus.com which is simple and doesn't take long. In this tutorial I'm going to show how easy it is to re-create and say any problems I came up with when doing the tutorial. in their tutorial they also created paper and a pencil sharpener with some pencil shavings (link). But I'm only going to show you the pencil for now.
Below is the final design we will be working towards

Step One
Before we start we need to setup our grid. Open up the general settings by
going to Edit > Preferences > General (Command + K) and set the Keyboard increment to 1 px,
Constrain Angle to 32.25 degrees and Corner Radius to 43 px.

Step Two
Select the Rectangle Tool (M) and draw a long rectangle filled with a
blue colour or any colour you chose but i will advise to you to use the blue then once you know how it works you can go back and change (C55,M0,YO,K1). While drawing the rectangle it should go along with the grid.
Step Three
Zoom into the left end and add a path point with the Pen Tool (P).
Step Four
Then select the point with the Direct Selection Tool (A) and move it
towards the left. Hold the Shift Key while doing that.
Step Five
Duplicate the shape below the light blue one (Alt + Shift and drag) and fill it with a darker blue. as said in stage two you can chose own colours but as for the first run though would be advise to use colours shown (C81,M39,Y26,K1).
Step Six
Now this is were it gets a bit more tricky. Select the Pen Tool (P) and draw a beige line as shown below. Make it slightly angled. Then go to Effect > 3D
> Revolve and choose the settings you see in the image below (under custom rotation -7, -66, 127). Make
sure that you add extra highlight points. With these its try and error i had to create it a few times to get it just right.
Step Seven
Repeat Step 6 and add a much smaller dark grey line and apply the
same 3D Revolve settings (under custom rotation -7, -66, 127). This will be the lead tip of the pencil. Same with this step it was try and error to get it the way I wanted.
Step Eight
Next, draw with the Pen Tool (P) a similar shape shown below. This will be the metal end of the pencil where the eraser
tip is held in place. Then
repeat Step 7 and apply the 3D Revolve with the same settings.


Step Nine
For the eraser tip, create a similar red filled shape and a apply again the same 3D Revolve as in Step 8
Step Ten
Now we have created a pencil in a few easy steps. To give it a shadow
like you see in the image, make a copy of all pencil shapes and expand
their appearances. Then apply the Add to Shape Area in the Pathfinder
Palette.

Step Eleven
Fill the expanded shape with a black and apply a drop Shadow (Effect
> Stylize > Drop Shadow). Move the shape underneath the pencil.
Conclusion
Below is my final product you can add text along the pencil if you chose to. hope this has been helpful.

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