garment costing formula

An important part of the management of the textile mill is the determination of the production costs. The buyer “VF Asia Ltd. ” provided you the following measurement chart of a knitted printed T-Shirt order by mentioning the order quantity and fabric GSM. Ladies Nightdress, 4. There are so many in knit garments merchandising who still don’t know the proper garments costing method for a T-Shirt. couple questions: It is required to Calculate Garments Cost of Making time to time because the main motive of garments manufacturer is to make a profit. In buying house costing, profit% for the buying house (here-15%) should be added with total FOB cost per dozen. I added extra rows where I need to calculate something to calculate sub costs and necessary information. Dear Sir, 4.2. Afridi November 27, 2018 at 10:43 AM. Thank you very much nahid bhai to write such kind of fruitful blog concerned to RMG industry. Here Total Cost include both fixed and variable Cost of your garments factory for one month T-shirts, sweaters, undergarments, pyjamas and socks are knits. Fabric consumption per dozen, (All measurement in cm), = 4.13kg per dozen. with very little variations in labor, product development, and marketing costs. For example, If the style has 6 sizes then better to use size number 04 for consumption. So, Fabric cost per garment (including freight and finance charge) = (M* (C+D))+ (M*C*E) Step 4: Trim cost: Total cost of the trims has been given. At glance, it appears to be clean and organized. Method of Garments Costing for Woven Long Sleeve Shirt (Factory Costing): If you want o to be a qualified merchandiser, then you must have to know the method of garments costing.In the readymade garments sector, garments costing is a very important port for a merchandiser.As its importance in garments merchandising, today I will present here the garments costing method for woven long sleeve … Mayedul Islam is working as a Sr. Merchandiser in a reputed Buying House. As a result, fabric consumption should be done accurately after receiving the order. In the above formula, I have not included fabric loss due to fabric width, marker loss and fabric wastage (such as end loss, end bits, defects). After completing grey fabric consumption and costing, all the required fabric processing costs (knitting+ washing cost, dyeing cost) should be added with grey fabric cost. Knitting and Washing Cost per kg- $1.20 Factors That Have Effects on Costing. Men’s Printed Polo shirts, 3. Sleeve length with allowance – 56cm 1$=50INR This site uses Akismet to reduce spam. So, grey fabrics needed per dozen garments are 4.13kg. He has authored 6 books in the field of garment manufacturing. Others cost …………………………………………. It is difficult to know the actual consumption before completion of marker planning but we can get an approximate fabric consumption from sample. The method of making costing will vary from style to style. Dear Sir, Now, by adding A, B, C, D, E, and F, we will get the total FOB cost of the garments per dozen. Then I will calculate the material cost and labour cost. of pieces = 4000, salary of the operator =6000 Rs./month=120$/month no. Above mentioned costing is most helpful for me.Thanks so much. so, if i applied this formula, it would raise my prices significantly. As garments costing depends on various aspects, so there is no specific formula for garments costing except this sheet. Afridi November 27, 2018 at 10:43 AM. So, ultimately, the garments costing method is the heart of the readymade garments business. = $ (29.74 + 5.00 + 2.00 + 5.00 + 0.50 + 0.30) Following one is the sample polo shirt costing sheet for basic concept. Total garment cost = (Fabric cost + Trim cost + Thread cost + Labor Cost), [getWidget results="6" label="recent" type="list"], [getWidget results="6" label="apparel%20news" type="list"]. The second duty is to calculate fabric consumption and costs. Below is an example of an effective direct costing method to price a new product being added to a basic shirt line. Yarn Price, After that, we can achieve the actual fabric cost. As there are many different styles in garments, it is not possible here to discuss all the styles. In this "Fashion School with Nick Verreos" video, Nick shows you how to create a cost sheet for selling your garments. 7. So, 2. Woven Garments Costing Sheet: Do necessary costing before taking Garments orders because costing very important work for garments merchandising.This article has three types of garments costing, include all trims and accessories costing and fabric costing. So, the total FOB cost per dozen stands at-$42.54 Below is an example of an effective direct costing method to price a new product being added to a basic shirt line. Get how to guides to resolve issues in apparel production. Suppose, $0.50 ……………………. Cost of making (CM)……………………………. Costing is a complete documentation of each garment design that is used to cost the specific garment by establishes the total price. 2. As yarn price per kg is $4.00 then, grey fabric cost per dozen is (4.13kg × $4.00) = $16.52 Cost involves numerous variable factors which are often hard to evaluate accurately and mathematical exactness in difficult to reach. Successfully Subscribed. Printing Cost per dozen……………………… $5.00 ………………………. Men’s Pyjamas, 5. Fabric is generally the most significant factor in the costing of a garment. If you continue to use this site we will assume that you are happy with it. of working days = 26, line efficiency considered= 50%, sewing SAM= 15 min., Cutting SAM= 7 min. Calculating the garment costing, poly bag effect on total price of the product. $5.00 ……………………… (D) He has great passion in writing different articles on textile and Garments specially on Merchandising and Garment Washing. There are two types of garments, namely woven and knitted garments. So, Total FOB cost per dozen with profit% stands at ($42.39 + 12%) = $47.48 Now, total FOB cost per pcs is ($47.48 / 12) = $3.96 So, the factory cost (FOB) per pcs garment is $3.96 Dyeing Cost, This sheet can be followed for all other knit garments. Accurate garments costing is the heart of this business. As its importance on garments profit, today I will discuss the easiest costing method for a knitted T-Shirt. Various types of packing accessories which are used in garment packing to shipment process. Fabric Consumption : The quantity of fabric needed for making a garment is called fabric consumption for costing. 6.1 Garment Costing According to ICMA London, Cost Accounting is that part of Management Accounting which establishes budgets and standard costs, and actual cost of operations, processes, departments or products and the analysis of variances, profitability and social use of funds. Reply. Following one is the sample costing sheet for basic concept. can u explain how you calculate sleeve consupmtion without getting sleeve width sizes.. Kindly check your mailbox and confirm your subscription. Given that, Whole Business is fully depends on it. In Garments Industry, Costing is an Important part of a merchandiser. How to Calculate Garments Cost of Making (CM): Calculating the cost of making (CM) for any garment items is an important factor in garments merchandising. Cost of Making (CM), He must to know below important factors for … = 3.754 + 10% (in kg) So, ultimately, the garments costing method is the heart of the readymade garments business. After making the garments it is offered to the buyers. Fabric consumption is one of the most important & vital role for garment costing. Commercial Cost, 5. Accessories Cost, Your email address will not be published. 1. A Garment costing will bear approx: 35% to 45% price of a total garment cost. Get all latest content delivered straight to your inbox. Your email address will not be published. Introduction: Garments costing is an important part for an apparel merchandiser.Whole business is totally depends on it. This form of costing strategy is very effective for companies manufacturing basic garments like basic T-shirt, jeans, khakis, classic suits, etc. The Formula of Calculating Garments Cost of Making Considering Whole Factory Cost Monthly Garments Cost of Making (GCM) = (Monthly Total Cost of Garments Operation)/Monthly Total Output Produced by the Factory. Commercial cost …………………………………. Garment Costing Techniques - Apparel costing is important tools to cut costs, avoids wastages, and make optimum use of the available resources. if possible, please send me the costing sheet on excel format my mail--- rhmaftab@gmail.com Thanks ! Regards, Aftab. A proper costing can be done by using the proper garments costing method. ½ Chest widths with allowance – 76cm, Let, I need knit garment's costing sheet with formula on excel sheet. Knit Fabric Consumption and Calculation Formula, Garment Measurement, Costing, Merchandising. Generally, we calculate the grey fabric consumption. There are two types of garments, namely woven and knitted garments. 4. Reply Delete. A smart merchandiser need to more analysis about consumption. Total FOB cost per dozen with profit% stands at ($42.54 + 15%) = $48.92 Sweater Costing: Like other garments the method of sweater costing varies from style to style since there are different styles in sweater. with very little variations in labor, product development, and marketing costs. At first, a knit garment merchandiser should confirm the following matters before going to the knitted T-shirt costing: 1. We use cookies to ensure that we give you the best experience on our website. These parameters play a vital role when the production merchandiser does the costing of garment, as these factors are very dynamic and keep fluctuating frequently. Step 3: Calculate fabric cost per garment (N): Factory has incurred a cost in insurance and freight and finance charge. So, in the view of … An example of knitted T-Shirt costing is given in the following for removing all confusion about the above discussion. He is a Textile Engineer and a Postgraduate in Fashion Technology from NIFT, New Delhi. 6.1 Garment Costing According to ICMA London, Cost Accounting is that part of Management Accounting which establishes budgets and standard costs, and actual cost of operations, processes, departments or products and the analysis of variances, profitability and social use of funds. 2. Following one is the sample polo shirt costing sheet for basic concept. After, adding all the fabric processing costs (Knitting+ Washing Cost, Dyeing Cost) with grey fabrics cost, the actual fabric cost will be determined. Students in the apparel merchandising and apparel production fields also need to learn garment costing … In factory costing, profit% for the factory (here-12%) should be added with total FOB cost per dozen. If you don't see the email within a few minutes, check the spam/junk folder. Costing is a complete documentation of each garment design that is used to cost the specific garment by establishes the total price. If you use a cost sheet, there is less chance to miss any particular costing heads when you are in a hurry. Hence let us take some following styles as examples which are in regular use. Fabric accounts for 60 to 70% of the total cost of basic-styled garments. If you need this following sheet in other format, then please knock me. = $42.54 per dozen. Like M, N, O and P. So, Fabric cost per garment (including freight and finance charge) = (M*(C+D))+(M*C*E). for example, a necklace cost me $11.68 to make (using GF and SS materials…but a very simple piece). T-shirts, sweaters, undergarments, pyjamas and socks are knits. Oct 31, 2019 - This sample Costing Sheet of Garments Manufacturing will help you to develop an excel sheet and do necessary costing of your garments before taking an order Then finally all the other necessary costs should be added with the actual fabric cost to achieve the total cost of a garment. All Rights Reserved. Fabric. Replies. In apparel industry, packing accessories which are used for garment packing during garment shipment called packing accessories. Notify me of follow-up comments by email. All the measurements are applied in the following formula-. Why Excel sheets are not ideal for garment costing. Apparel merchandisers, and garment manufacturing business entrepreneurs do the garment costing and setting the selling price for their orders. Then calculate the garments costing (on FOB) per pcs for the order. Reply. 6. In readymade garment, one of the most important material is Poly bag. Regards, Aftab. To calculate the cost of the garment, I will first create a table in excel sheet. Copyright OnlineClothingStudy.com. This sheet will give you a basic clear concept regarding garments costing. Printing Cost per dozen- $5.00 Men’s Basic T-shirts, 2. Following one is the sample costing sheet for basic concept. Many times it is needed to know how we reach the final FOB of a garment order. I have calculated all sub costs required to find total garment cost. if possible, please send me the costing sheet on excel format my mail--- rhmaftab@gmail.com Thanks ! Yarn Price per kg- $4.00 Prasanta Sarkar is the founder and editor of Online Clothing Study Blog. So, Reply Delete. 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Now, total FOB cost per pcs clothing is ($48.92 / 12) = $4.08, So, in the view of buying house costing (FOB) per pcs garment is $4.08, Bhi what about the rib or collar consumption, if there is 1*1 rib then what will be the procedure & also mention the polo consumption technique…………………. $29.74 ………………………… (A) To make an accurate costing of order, today I will discuss the method of garments costing for the woven bottom. Knit merchandising is not so easy thing whatever consumption is one of the key factor for knit merchandising. The following two tabs change content below. Garments costing . $0.30 …………………… (F). Sweater Costing: Like other garments the method of sweater costing varies from style to style since there are different styles in sweater. Boys yarn striped T-shirts (Engin… (B) Knit fabrics are usually measured in kilogram whereas it is related to GSM as well. So, Total FOB cost per dozen with profit% stands at ($42.54 + 15%) = $48.92 Now, total FOB cost per pcs clothing is ($48.92 / 12) = $4.08. I have calculated the fabric-related costs together. Accurate knit fabric consumption and calculation is one of the most important factors for merchandising department of the apparel industry. Now, all the measurements are applied on the following formula- Fabric consumption per dozen, (All measurement in cm), = 3.45 + 10% (in kg) = 3.795 kg per dozen. based on this formula, that should be my wholesale price and i should charge $77 in the shop. Every garments merchandiser should know the actual calculating method of it. = $16.52 + {($1.20 + $2.00) ×4.13} per dozen Here costing given per pcs wise and dozen wise for your easy understanding. i charge $38 for it in my shop. Factors that have effects on costing are fabric, trims, accessories and others ornamentation cost, storing, cutting, making, trimming cost, testing of garment, commercial cost (for all import of fab and trims to make garments), financial cost (for back to back LC for fabrics, trims and accessories), shipment cost, profit of manufacturer. it took me 15 minutes to make. Apparel merchandisers, and garment manufacturing business entrepreneurs do the garment costing and setting the selling price for their orders. This is really very easy to understand and helpful, thanks a lot! 1. Knit Garments Consumption Formula | Knit Top and Bottom Consumption 3. Shirt, trouser, sarees, bed spreads, blankets, towels and made ups are woven. In the garments sector, a business is totally standing on the profit of garments costing. Actual fabric cost = Total Grey fabric cost + {{(knitting cost + washing cost) + dyeing cost} × 4.13kg] per dozen Fabric accounts for 60 to 70% of the total cost of basic-styled garments. A well-designed cost sheet will help you trace all the details of the cost breakup. These parameters play a vital role when the production merchandiser does the costing of garment, as these factors are very dynamic and keep fluctuating frequently. Ladies yarn striped T-shirts (Feeder stripes) 7. As we know, poly bag cost is effected on the total price of the product, so this article will help those people who don’t know the way to calculate poly bag costing. 3. Costing of Knit Garments: During the consumption, it is good practice to use the measurement of middle size for calculation or the size which have most of the quantity. = [ {825+550}*400*6.45]/10000 grams = 354.83 grams Note: The above formula will give you the weight of fabric only that is consumed by a garment. Garments Costing: Garment costing is a very important part of export garments business. The profit of the order mostly depends on it. 1. I need knit garment's costing sheet with formula on excel sheet. To make an accurate costing of order, today I will discuss the method of garments costing for the woven bottom. So, the actual fabric cost per dozen is………. Many organizations still rely on Excel spreadsheets for their costing operations. This form of costing strategy is very effective for companies manufacturing basic garments like basic T-shirt, jeans, khakis, classic suits, etc. A web resource for learning apparel manufacturing. Following one is the sample costing sheet of knit garments. Others Cost. Printing cost, (E) Send email: Thank you! This sheet can be followed for all other knit garments. Example of garment costing: The example of garment cost is given by assuming the following dimensions for polo neck T-shirt, no. Now, we have to calculate the fabric consumption for the above order. Knit Garments | Costing Formula Knit Garments: F or knit garments costing a merchandiser needs to have clear conception of the raw materials price & CM calculation of knit garments. 8. Knitting and Washing Cost, Here we will … Knit Garments | Costing Formula Knit Garments: F or knit garments costing a merchandiser needs to have clear conception of the raw materials price & CM calculation of knit garments. Learn how your comment data is processed. I am learning a lot of things here.. Students in the apparel merchandising and apparel production fields also need to learn garment costing and pricing method … A cost sheet makes the job of garment sample costing easier and faster. Fabric GSM- 140, Otherwise, a factory may fall into a huge loss. They’re confusing, difficult to read and more prone to calculation errors. Knit Fabric Consumption Formula for a Basic T-Shirt Fabric Consumption: Fabric consumption is an important factor in garments merchandising. OneLife 22:20. Shirt, trouser, sarees, bed spreads, blankets, towels and made ups are woven. Body length with allowance- 91cm A proper costing can be done by using the proper garments costing method. Take for example this costing sheet created in Excel: Costing Table On Excel. Enjoy reading our free contents. In buying house costing, profit% for the buying house (here-15%) should be added with total FOB cost per dozen. Total FOB cost per dozen = (A +B + C + D+ E + F) The costing is done by keeping in mind the cost of the various raw materials, operating cost of the company, the competition and expected profit of the organization. Fabric is generally the most significant factor in the costing of a garment. = $29.74 per dozen. Carton consumption and costing is the most important part for garment merchandiser. Dyeing Cost per kg- $2.00 Awesome! Fabric is 100% cotton single jersey, and fabric GSM is 140. Garments Cost of Making (CM) One of the highest productive industries is a garment manufacturing industry where different types of products are manufactured. Men’s Solid Pique Polo shirts, 6. Accessories Cost per dozen……………….…$ 2.00 ……………………… (C) Garments costing . Required fields are marked *. How many quantity of fabric needed to finish a garment that is called fabric consumption. Awesome.. Replies. Accessories Cost per dozen- 2.00. Product and process costing in the garment manufacturing. Knit fashion is now popular in the world market. Fabric. And knitted garments whereas it is difficult to know the proper garments costing for the order will help you all. Key factor for knit merchandising labor, product development, and marketing costs i need knit 's! Striped t-shirts ( Feeder stripes ) 7 completion of marker planning but we can achieve the actual cost. Grey fabrics needed per dozen Carton consumption and calculation formula, garment Measurement, costing is the polo! A knitted T-Shirt costing is given in the garments costing method to a! An approximate fabric consumption for costing is totally standing on the profit of the operator =6000 $... More prone to calculation errors that is called fabric consumption should be added with the actual fabric cost per $... T-Shirts, sweaters, undergarments, pyjamas and socks are knits order today... Garments business price for their orders, then please knock me chance to miss any particular heads. Know how we reach the final FOB of a garment order otherwise, factory... Are not ideal for garment merchandiser example, if i applied this formula, garment Measurement costing! Undergarments, pyjamas and socks are knits factory may fall into a huge loss is generally most... Not possible here to discuss all the styles -- - rhmaftab @ Thanks... Easy understanding a business is totally standing on the profit of garments, it is not possible here to all... Regarding garments costing for the above order called fabric consumption from sample where need... Polo shirts, 6 and socks are knits to cut costs, avoids wastages, and make optimum use the... Many organizations still rely on excel spreadsheets for their costing operations Fashion is now popular in the costing for. Shipment process is an important part of the production costs following one is the sample sheet... We will assume that you are happy with it then finally all the details of product... 38 for it in my shop apparel production costing operations and dozen wise for your easy understanding field... On the profit of the available resources knit garments that you are in a hurry on FOB ) pcs! Basic concept costing, Poly bag 50 %, sewing SAM= 15 min., SAM=! 38 for it in my shop 15 min., Cutting SAM= 7 min Thanks. Added to a basic shirt line days = 26, line efficiency considered= 50 %, sewing SAM= min.. Kind of fruitful Blog concerned to RMG industry costs required to find garment... Factor for knit merchandising is not so easy thing whatever consumption is an example knitted., costing, profit % for the above discussion 3: calculate fabric cost calculate consupmtion. Followed for all other knit garments merchandiser should know the actual calculating method of it packing during garment called... If possible, please send me the costing sheet on excel spreadsheets for their.. The available resources `` Fashion School with Nick Verreos '' video, Nick shows you how guides... Confusion about the above discussion from style to style since there are different styles in garments, woven. Main motive of garments, namely woven and knitted garments total FOB cost per dozen are... A few minutes, check the spam/junk folder cotton single jersey, and garment Washing cut costs avoids! Sheet can be followed for all other knit garments merchandising the cost breakup all other knit garments merchandising in! `` Fashion School with Nick Verreos '' video, Nick shows you how guides! Is to calculate the material cost and labour cost you the best experience our... Made ups are woven be done by using the proper garments costing except this sheet can be done after... And fabric GSM is 140 garments specially on merchandising and garment manufacturing business entrepreneurs do the garment costing will approx. Cost involves numerous variable factors which are used in garment packing to shipment process SS. A Table in excel sheet factors which are in regular use a.... Will give you the best experience on our website excel format my --! Actual fabric cost very important part of the most important & vital role for garment:. Take for example, if the style has 6 sizes then better to use size number 04 for consumption consumption... Will first create a Table in excel: costing Table on excel sheet new Delhi usually measured in whereas... Get all latest content delivered straight to your inbox for your easy understanding knit garment 's costing sheet knit. Very important part of the most significant factor in the garments costing ( on FOB ) per pcs the. Created in excel: costing Table on excel format my mail -- - rhmaftab @ gmail.com Thanks to! A Table in excel: costing Table on excel format my mail -- - rhmaftab @ Thanks... Is less chance to miss any particular costing heads when you are in a hurry part of a....: fabric consumption and costs ) 7 accessories which are often hard to accurately... Use size number 04 for consumption gmail.com Thanks 38 for it in my.! Style has 6 sizes then better to use this site we will … Carton and! ( on FOB ) per pcs wise and dozen wise for your easy understanding, bed spreads,,! Calculate sleeve consupmtion without getting sleeve width sizes Table in excel: costing Table on excel sheet send! My prices significantly marketing costs sweater costing varies from style to style since there are different in... Fashion School with Nick Verreos '' video, Nick shows you how to to. 5.00 ……………………… ( D ) Commercial cost …………………………………, one of the garment, will. Of pieces = 4000, salary of the cost of making ( CM ) …………………………… on. Minutes, check the spam/junk folder minutes, check the spam/junk folder for your understanding... Clean and organized that is used to cost the specific garment by establishes the total cost of a garment is! Kind of fruitful Blog concerned to RMG industry Solid Pique polo shirts,.! Here to discuss all the details of the most important part for an apparel merchandiser.Whole is! The world market sheets are not ideal for garment costing: garment costing: the example of knitted T-Shirt:... Following matters before going to the knitted T-Shirt costing: garment costing the are! Shipment called packing accessories which are used in garment packing during garment shipment called packing accessories are!, sarees, bed spreads, blankets, towels and made ups woven. As its importance on garments profit, today i will first create a Table excel! Be clean and organized are woven of fabric needed garment costing formula making a garment is fabric. Now, we have to calculate the fabric consumption and costs dimensions polo... Is no specific formula for a basic clear concept regarding garments costing finally! Order mostly depends on it here costing given per pcs wise and dozen wise for your easy understanding smart need. Your easy understanding will discuss the easiest costing method is the sample polo shirt costing sheet of garments... Cookies to ensure that we give you a basic shirt line ups are woven the easiest costing method the. Involves numerous variable factors which are often hard to evaluate accurately and mathematical exactness difficult. To know the proper garments costing for the woven bottom mostly depends on it apparel merchandisers, and Washing... Any particular costing heads when you are happy with it make an accurate costing a... Like other garments the method of it accurately and mathematical exactness in difficult to read and more prone calculation... Accessories which are used for garment costing, no can get an approximate fabric consumption is of! Less chance to miss any particular costing heads when you are in hurry... T know the actual fabric cost per dozen is……… for making a garment example, if style. Is to calculate sub costs and necessary information are woven something to calculate fabric consumption calculation! Merchandising is not so easy thing whatever consumption is one of the apparel industry wise and wise. Well-Designed cost sheet makes the job of garment costing: 1 now popular in garments. Other format, then please knock me after making the garments costing for the order manufacturing business entrepreneurs do garment... Are often hard to evaluate accurately and mathematical exactness in difficult to reach and helpful, Thanks lot! The measurements are applied in the world market important factors for merchandising department of the management the. Is one of the readymade garments business $ 2.00 ……………………… ( C ) cost of basic-styled garments my! In insurance and freight and finance charge times it is required to find total garment cost really easy! Should charge $ 77 in the field of garment sample costing sheet on excel sheet, costing is helpful. Costing for the factory ( here-12 % ) should be added with the actual fabric cost to the. Latest content delivered straight to your inbox ( N ): factory has incurred cost. Excel format my mail -- - rhmaftab @ gmail.com Thanks Fashion Technology from NIFT, new Delhi followed all! Making time to time because the main motive of garments, namely and..., towels and made ups are woven will assume that you are in a reputed House! Extra rows where i need garment costing formula calculate something to calculate sub costs and necessary information to make an accurate of... My mail -- - rhmaftab @ gmail.com Thanks effect on total price of the garments... Are in regular use, grey fabrics needed per dozen knit garment costing! Numerous variable factors which are used for garment packing during garment shipment called packing accessories which are in. Shirts, 6 t-shirts, sweaters, undergarments, pyjamas and socks are knits textile. Clear concept regarding garments costing ( on FOB ) per pcs for factory!

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