Scribd
Upload
2K views6 pages

Costing in Garment Industry

The document discusses costing in the garment industry. It explains that costing involves calculating all expenses such as materials, production, shipping, overhead and commissions. An accurate cost sheet is important as it shows the buyer how the final price is determined and ensures all cost elements are considered. It also provides a sample basic crew neck tee cost sheet that calculates expenses for fabric, production, finishing, markup and rejects to arrive at the total cost. Accurate costing is essential for garment manufacturers to submit competitive price quotes to buyers.

Uploaded by

Bhaswati Panda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
2K views6 pages

Costing in Garment Industry

The document discusses costing in the garment industry. It explains that costing involves calculating all expenses such as materials, production, shipping, overhead and commissions. An accurate cost sheet is important as it shows the buyer how the final price is determined and ensures all cost elements are considered. It also provides a sample basic crew neck tee cost sheet that calculates expenses for fabric, production, finishing, markup and rejects to arrive at the total cost. Accurate costing is essential for garment manufacturers to submit competitive price quotes to buyers.

Uploaded by

Bhaswati Panda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Actual Cost Sheet: Provides a breakdown of item costs involved in the garment production process, including fabric and trims.
  • Eastern Heritage Buyer Cost Sheet: Details the cost sheet for a specific style of dress, showcasing fabric costs and trim expenses.
  • Costing in Garment Industry: Explains the elements of costing in garment production and discusses issues like fluctuation of raw materials and pricing strategies.
  • Crew Neck Tee Cost Analysis: Analyzes basic crew neck tee costs, including breakdowns for fabric and additional manufacturing steps.
  • Costing Sheet Details: Describes the considerations for creating a general garment cost sheet, emphasizing negotiation and transparency with buyers.
  • Cost Summary: Presents a summary of costs associated with pattern, cutting, sewing, and finishing for garments.

COSTING IN GARMENT INDUSTRY

● Costing includes all the activities like purchase of raw materials,


accessories, processing and finishing of fabrics, sewing and packing of
garments, transport , shipping, over heads, banking charges and
commissions, etc.

CORRECT COSTING.

● One must know all the procedures involved in manufacture of a garment.


● Should have a very good knowledge of the price of all materials and trims.
● Should know the time for manufacturing of each garment .
● Should study the details required in a garment as per the tech sheet and
buyer.
● Fluctuation of raw material.
● Floating exchange rate.
● Quality.
● Customers.
● Qty and size break up
● Wastage.

COSTING SHEET

● Garment costing sheet is as per the exporter’s and buyer’s requirement.


● Cost sheet will make the job easier to finalize the price and get the order
from the buyer.
● This is one of the important role of a merchandiser for a company to get
business and there should be no error.
● Cost sheet will help you to avoid any particular costing head.
● You will know how we reached to the final free on board (fob).
● Well prepared cost sheet will help you to trace all details of costing.
● Cost sheet will also give you the cost break up for future reference.
● Based on product costing, merchandiser has to submit the price quotation
to respective buyers..
● We should remember that every buyer refers their product to several
manufacturers to compare price quotation.
● If our price quotation does not satisfy the buyer,they will not give us the
order.
● Will also help you to give the open costing if required to the buyer to
negotiate.

ANY BASIC CREW NECK TEE

AVERAGE (IN KGS)

STYLE NO. ANY BASIC CREW NECK TEE

FABRIC - BODY FABRIC 100%COTTON 30'S S/J 160GSM

YARN - 265/KG (as an


FABRIC PRICE/KGS (RS) ​-s/j 450
example)
AVERAGE (IN KGS) 0.255 2%YARN WASTAGE = 270

FABRIC COST 114.75 20(KNITTING= 290

FABRIC PRICE/KGS (RS) ​1x1 rib 450 100RS/-(DYING)= 390


15%(DYING LOSS+END
AVERAGE (IN KGS) 0.015 PANEL WASTAGE) =Rs/-
450 APP.
FABRIC COST 6.75

TOTAL FABRIC COST 121.5

PATTERN, CUTTING & SEWING 28

FINISHING &PACKING 22

depend of print size or


printing 25
quality

TESTING 5

WASHING 3

trims 12

TOTAL 216.5

MARK UP @ 15 % 32.48

REJECTION @ 5% 10.83

GRAND TOTAL 259.80

GBP ( 95 conversion) 2.73

DT:- 03/06/12 DT:- 03/06/12

STYLE NO. WF42G03 WF42G03

32'S SURI SLUBJERSEY 120 32'S SURI SLUBJERSEY


FABRIC - BODY FABRIC
GSM (PC DYED) 120 GSM (OVER DYE )

FABRIC PRICE/KGS (RS) 470 394

AVERAGE (IN KGS) 0.225 0.225

TOTAL FABRIC COST 105.75 88.65


PATTERN, CUTTING & SEWING 40 40

PIGMENT O/DYE 32

TRIMS + HANGER 30 30

TESTING 8 8

WASHING 3 3

FINISHING &PACKING 15 15

TOTAL 201.75 216.65

MARK UP @ 15 % 30.26 32.50

REJECTION @ 3% 6.05 10.83

GRAND TOTAL 238.07 259.98

USD (@ Rs. 47 ) 5.07 5.53

You might also like