Costing of Export Oriented Garments Industry

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 Export Oriented Garments Industry
Fig: Costing of Garments Industry

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: mayedul.islam66@gmail.com

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