MD.KHAIRUL BASHARB.Sc. in Textile EngineeringConcentration: Apparel Manufacturing TechnologyIntake:7th Section:01ID: 12131107011

Bangladesh University of Business and Technology(BUBT)

Garments Costing

Calculation Formula:

Fabric Consumption: [{(B.L +S.L + 4-10 cm) ×( ½ chest+ 2-4 cm) ×2}×GSM ]

=……………………………………………………………………

10000000 Labour cost per minute = (Monthly salary of

an operators/Total minutes available in the month

Sewing cost = (SAM of the garment * Minute cost of the labour) / Line eff%

Cutting cost = (SAM of cutting * Minute cost of the labour) / cutting efficiency (%)

CMT = sewing cost + cutting cost + trimming

Garment Costing:For garments costing a merchandiser needs to have clear conception on some important Terms. They are-

Fabric Consumption Fabric Cost Accessories Cost Print/Embroidery/Washing Charge C.M. Freight (C & F) Payment mode (at sight deferred payment 60days or 90 days or 120

days, TT, Sales Contract)

Example of garment costing calculation: The calculation of garment costing is given by assuming the following

dimensions for polo neck T-shirt, No. of pieces = 5000, Salary of the operator =6000 tk/month=80$/month, No. of working days = 26, Line efficiency considered= 52%, Sewing SAM= 15 min., Cutting SAM= 7 min. 1$ =75 taka Chest = 60 cm, Length (HSP to waist) = 75 cm, Sleeve length = 25 cm Fabric used is 2/60s 100% cotton S/J fabric. GSM is 180

Solution :-The fabric consumption can be calculated as

[{(B.L +S.L + 4-10 cm) ×( ½ chest+ 2-4 cm) ×2}×GSM ]=……………………………………………………………………………………

10000000

[{(75+25 + 4) ×( 60+ 2) ×2}×180 ]=……………………………………………………..

10000000 = 0.232 + Wastage 10% [if consider 10% wastage]

= 0.255 kg/pcs

CMT (cost of making with trimming) charges may be calculated as follows Labour cost per minute = (Monthly salary of an operators/Total minutes available in

the month

= 6000/ (26×8×60) = 0.48 tk.

Sewing cost = (SAM of the garment * Minute cost of the labour) / Line eff%

= 15*0.48 / 52% = 13.85 tk.

Cutting cost = (SAM of cutting * Minute cost of the labour) / cutting efficiency (%)

= 7*0.48 / 52% = 6.46 tk.

Now trimming cost is considered as 3.70 tk. but it depends how number of operators are there for trimming .

CMT = sewing cost + cutting cost + trimming

= 13.85+ 6.46+ 3.70 = 24.01 tk.

Consumption Calculation for woven basic Trouser/Pant:

Here,Fabric width =59″½ waist circular =46cm + 8 (Seam allowance) = 54cmFront rise = 28cm ( Including waist belt ) + 8 (Seam allowance) = 36cm½ Thigh circular = 36cm + 6 (Seam allowance) = 42cmInseam length = 821cm + 3 (Seam allowance) = 85cm

Consumption = (54 × 36) × 2 + (42 × 85) × 4 ÷ 36 ÷ 59 + 5%

= 3888 + 14280 ÷ 6.45 ÷ 36 ÷ 59 + 5% = 1.33 + 0.05 = 1.38 yds /pcs

Per doz = 1.38× 12 = 15.84 /dz (ypd) + 5%(wastage) = (15.84 × 5/ 100) + 15.84 = 0.792 + 15.84 = 16.63 yds/doz

If the price for the fabric is $0.95 per yds. The cost for the garment will be Cost per dozen (Fabric) = .95 x 16.63 = $ 15.80 Accessories: cost /dz = US $ 6.00 (1 piece all time $ .15) CM /dz = US $ 10.00Subtotal = US $ 31.80 Transport cost from factory to sea or airport (.5%) = US $ 0.20Clearing and forwarding cost (2%) = US $ 0.90 Overhead cost (.5%) = US$ 0.20 Net cost price = US$ 33.10 Profit (10%) = US $ 4.2Net FOB Price =US $ 37.30Freight (4%) =US $ 2.00Net C & F =US $ 39.30Insurance (1%) =US$ 0.48Net CIF Price =US $ 49.12

Net FOB Price =US $ 37.30Freight (4%) =US $ 2.00Net C & F =US $ 39.30Insurance (1%) =US$ 0.48Net CIF Price =US $ 49.12