Costing Calculation for Men’s T-shirt

Costing Calculation for 1 Dozen Men’s T-shirt:
In order to achieve perfect garment costing, one must know about all the activities including purchase of fabrics, sewing, packing, transport, overheads, etc, and also about their costs, procedures, advantages, and risk factor. Like other garments, the method of t-shirt costing varies from style to style since there are different styles in men’s t-shirt. A garment merchandiser needs to have a clear conception of the raw materials price & garments cost of making (CM) calculation of knit garments. Because profit defends on optimum costing. Following one is the sample costing sheet for the basic concept. At first, let me know about the brief of garments costing.

Garment Costing:

Costing means the total cost of garments. It is the process of estimating and then determining the total cost of producing a garment. In costing every price is included. The cost of a garment is a very necessary and important task. In this factory, costing is carried out by the merchandising department.

Firstly merchandiser contacts the buyer and collects the order. Then he is provided a sample section according to the buyer’s specification. The sample section also supplies the fabric consumption. The cost of the fabric is determined according to the consumption. Then he makes the costing of other raw materials, Accessories, trimmings, etc. He adds all production costs, transport costs, commission, and profit.

Table: Costing Calculation for 1 Dozen Men’s T-Shirt

 Unit Price Costing Fabric Consumption 1.94 kg/dz \$ 6/kg \$11.64/kg Accessories \$3.5/dz \$3.5/dz CM (Cost of Manufacturing) \$4/dz \$4/dz Total \$19.14/dz

Costing of Men’s T-shirt:

Direct Cost (Raw Materials) = \$19.14/dz
Indirect Cost (15% of Direct Cost) =\$ 19.14*15%=\$2.871

Total Cost (Direct Cost + Indirect Cost) = \$19.14+\$2.871= \$22.011

Profit (7% of Total Cost) = \$22.011*7% = \$1.55
Price for 1 Dozen Men’s Shirt (Total Cost + Profit) = \$23.55

So, the Price of 1 Dozen of Men’s T-Shirt is \$23.55

```Author of this Article:
Noor Ahmed Raaz
Asst. Merchandiser
A.M.C.S Textile Ltd
Email: [email protected]```

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