Costing preparation of a woven shirt

Study on basic of costing & preparation of costing for a given amount of garments of a woven shirt.

Maruf Mahfuz

Email: maruf.txt@gmail.com 

Department of textile Engineering 

World university of Bangladesh 

Cell no: 01738676060

Introduction:

Consumption of garments is an essential part for offering price to the buyer. Not only for price offering but also essential for amount of booking to the suppliers. How many trimmings & accessories are required & how much fabric is required for the production of that particular style it is calculated by the costing. For booking to the suppliers cost analysis should be done, otherwise the benefits of that particular order will not be clear to the manufacturer.

Objective:

• To know about the basics of costing of a basic woven shirt.
• To know about the preparation of costing for a woven shirt.
• To know about the procedure of costing.

Costing analysis:

BUYER
SEASON
STYLE
ITEM
GARMENTS DELIVERY
FABRIC ESTIMATED TIME OF DELIVERY

ACSESSORIES:

ITEM DESCRIPTION	CODE	CONSUPMTION	RATE	COST/DOZEN
MAIN LABEL				0.45
SIZE LABEL				0.2
DPCI LABEL				0.08
PATCH LABEL				0.2
JOCKER TAG				0.25
SECONDARY LABEL				0.22
BARCODE STICKER				0.20
SIZE STICKER				0.15
BUTTON	27 L DTM	2 PCS	2/GROSS	0.35
ELASSTIC		28 YDS	0.13/ YDS	3.822
TWILL TAPE		30 YDS	0.051/YDS	1.375
POCKETING				3.78
INTERLINI NG				1.37035
THREAD				1.20
POLY				0.50
CARTON				1.00
HANG TAG				0.5
HANGER				1.5
FINISHING				0.1
TOTAL/dozen				17.2472

C. M CALCULATION

	1.A		1.B
1.	ACTUAL COST	COMMERCIAL COST		TOTAL COST
FABRIC COST	26.71	3%		27.51
ACCYS COST	17.25	2%		17.60
WASH COST	3.00	00		3.OO
DRY	N/A	00		00
TOTAL		47.26		48.11

Factory Name :	Amount
No. of machines / line	55
Factory cost / day 10 hrs.	40,000 in taka
Production / day / line hrs.	1000 pcs
Production cost / dozen	480 in taka
USD	6.40
US $ Equal to taka	75

2. Factory production cost

6.40 USD

3. Total cost  1 B = sl 2

54.51 USD

4. Export + commercial cost + courier cost + test charge (2% Sl no. 3)

54.51 * 2/100 = 1.092 USD

5. Total cost (sl no. 3 + 4 )

55.6002 USD

6. Head office ( Marketing+ Merchandising + commercial dept ) 2 % of sl no 5

1.112 USD

7.  Total cost sl 5 + 6

56.712 USD

8. Profit  = 10 % sl 7

3.969 USD

9.  FOB sl no 7 + 8

60. 681 USD

10. Calculated CM ( sl no. 9 – 1 B )

12.57 USD

Cost breakdown

Cost breakdown
Particulars		US$
Fabric	With 3 % commercial cost	27.51
Accessories	With 2 % Commercial cost	17.58
Wash		3.00
CM		12.57
Total / dozen		60.66
FOB / pcs		4.82
FOB / pcs with test	Test charge	4.82

RESULT:

Per pc garments cost= 4.82 dollar

So, If given amount is 100000 pcs then cost will be = 4.82 * 100000

= 482577.56 dollar.

Comments:

Preparation of cost sheet is a main tool for negotiating with buyer. So every merchandiser is subjected to do well in costing. Therefore I hope the gathered knowledge will help me in any practical application of costing.