Costing of Export Oriented Garments:
Costing is very important for a productive factory. Without proper garments costing, all production curriculums will go in vain. Because a factory cannot reach its goal without achieving good profit and good profit is not possible without skillful costing. In this article, we will discuss costing of export-oriented garments.
Costing of the product:
Let, price of yarn is $ 3.00/kg
Process loss of yarn for knitting (10%) = $0.30
Knitting fabric cost = $3.30
Cost of dyes & chemicals = $2.50
Process loss for dyeing (12%) = $0.30
Dyed fabric cost = $6.10
Packing cost = $0.05
Production cost of fabric = $6.15
Fabric price (with 25% margin) = $7.79
Fabric consumption /doz,
……(Body length + Sleeve length + 10) x Chest length x 2 GSM x 12
= …………………………………………………………………………..………………….
………………………………………….10000000
Garment specification:
- Body length = 78 cm
- Sleeve length = 33 cm
- Chest length = 62 cm
- GSM = 210
…………………………………………(78 + 33) x 62 x 2 x 210 x 12
Fabric consumption/doz. = ……………………………………………
…………………………………………………………..1000
= 3.469 kg
Fabric consumption /doz (with 10% wastage) = 3.816 kg
Body fabric cost/doz = $(7.79 × 3.816) = $29.73
Cost of collar & cuff/doz = $4.00
Cost of trims = $2.25
Cost of trims (with 5% process loss) = $2.36
Production cost of garment/doz = $36.09
Garment price/doz (with 25% profit) = $45.12
Author of this Article: Mayedul Islam Merchandiser at Fashion Xpress Buying House Badda, Dhaka, Bangladesh. Email: [email protected]