“Costing of Fabric and Garment for an Export Order”

A report submitted towards the partial fulfilment of the course of Masters of Fashion
Management

Submitted by:

Ms. K. Shailaja (MFM/19/216)

Ms. Rishu Priya (MFM/19/931)
Ms. Sisira B S (MFM/19/948)

Under the guidance of:

Dr. Santosh Tarai

(Professor, FMS)

Submitted to:

Department of Fashion Management Studies

National Institute of Fashion Technology
(Ministry of Textiles, Govt. of India)
NIFT Campus, IDCO Plot No-24,
Bhubaneswar, Odisha-751024.
1. Introduction
Nowadays, apparel business is one of the most important and promising busi- nesses all over the world. Though
apparel business is time-consuming business, most of the developing or trivial developed countries are doing this
business. In apparel business, costing is the most important issue to sustain in this business arena.
The garment costing details the cost of every item attributable to the produc- tion of a particular garment. The sum
of these costs plus the profit margin is the
selling price which the company will quote to customers . A cost sheet is a complete record of each design and is
used to cost garment and establish the wholesale price . The original copy (designer worksheet) is for the
manufac- turer or production person, who completes the trimming cost and labor cost . Principally, costing sheet
contains the fabric cost, accessories cost, CM cost and other costs. All these costs are accountable for the final price
of a product. To make full garments, lots of chain has to maintain. As the supply chain of the garments industry
is quite divers, each component of the chain contributes to- wards the final cost of the garment. The simple
supply chain in the industry starts to form the fiber manufacturing, in case of manufactured fiber and runs
through the various process such as yarn manufacturing, weaving, dyeing and printing, stitching, cutting, sewing,
packaging and many more. Each constituent involves the cost directly or indirectly, which is continued to cost of the
garment. The cost interdependency in the current example is a production line change over cost that is incurred
to retool a machine whenever the production process changes from one product to another. Denim commodity
chain promises a much more nuanced and informative example of contemporary political econ- omy and the
interplay between production and consumption. This study was accomplished an overview the costing techniques
currently present in the appa- rel industry. Costing includes all the activities like purchase of yarn, knitting,
dyeing, fabrication cost, all materials cost, CM cost, print, embroidery, wash, carton costing, poly consumption,
test cost, inspection cost, commercial cost, profit and also shipment cost. The manufacturers are using different
techniques to make cost details. Although in this modern time, manufacturer used numer- ous modern software
and techniques to make cost sheet. The garment costing is defined to set the wholesale price that retailer and
consumer have to pay for the goods. The study was developed the background of costing and unworn sys- tem of
production cost from manufacturing of fabric to wholesaler and to con- sumer.

2. Methods of Constructing Garments Cost Sheet

Cost of manufacturing of a product is not always same as it was projected at the sample level. Various factors can
influence the cost of manufacturing a product which is dynamic in nature. These dynamic factors can influence cost
of manu- facturing on a single day which can create a remarkable impact on daily produc- tion and cost of the
product. Majority of the apparel industry feel that it is essen- tial to have modification on garment cost analysis,
especially for finished prod- ucts [3]. By analyzing a single department like fabric purchasing department is not
possible to fix the final cost of a product. For making a final cost sheet it is required to analyze all the costing which
is related to make a full garment. When product is designed, the designer must have a clear idea about fabric and
acces- sories costing conceivably needs to have an overall idea of production to assist in making cost sheet. There is
no fixed process of making final cost sheet. This study provides the background of preparing final cost sheet and
present proce- dure of making cost sheet. This research is designed to establish a procedure for making cost sheet
from fabric purchasing to the retailer.

2.1. Stages of Costing

As garments vendor must consider the production lead time of fabrics to gar- ments shipment. Such a fabric from
overseas then the below chart (Table 1) is carefully considered.
Costing could be carried out at the various stages of production-preliminary or pre-costing this is carried out during
product development before samples are made, first proto costing (available costing as per tech pack), second
1
protocost- ing (depends on buyer), salesman or commercial sample stage costing, final costing which is done
before the production and price fixing, re-costing is done where there is any change in machinery, production
process, materials or gar- ment components and actual costs are determined during production [4].

Table 1. Fabric from overseas then the below chart.

SHELL TRIM FABRICS ZIPPER TOTAL (SHELL

SHELL FABRICS FABRICS PRODUCTO
STYLE FABRICS TRANSIT CONSIDERING CONSIDERING FAB + TRANSIT +
ART MILLER N LTD.
LT BD MILLER YKK, BD PRODUCTION LT)

XYZ FABRICS
VN0A3AYY CSW140023 50 30 50 6 - 7 WKS 45 125
LTD, CHINA

2.2. Factors That Have Effects on Costing

Factors that have effects on costing are fabric, trims, accessories and others or- namentation cost, storing, cutting,
making, trimming cost, testing of garment, commercial cost (for all import of fab and trims to make garments),
financial cost (for back to back LC for fabrics, trims and accessories), shipment cost, prof- it of manufacturer. These
particular factors affect a lot to make a garment. There are so many sub-factors in these eight factors. Fabric is the
most important com- ponent to make a particular garment. Approximately 50% cost is required for fabric [5]. Some
factors that affect the fabric price are fabric GSM (highly responsible for the costing of fabric), quantity of fabric (if
the fabrics quantity is high then price will be low against for low fabric quantity price will be high), nature of fa-
bric, length/width, shrinkage (length width and shrinkage of fabric has impact on fabric costing), country of origin,
market demand has a lot of impact on fabric pricing and brand acceptance. Trim accessories and other
ornamentation costs are the most important to prepare a final cost sheet. From the garments perspec- tive where
fabrics are kept before starting the making procedure is called store. So, store has impact on costing. Basically
making means sewing garments. After cutting, fabrics are sent to sewing section for attaching different parts of a
gar- ment through sewing thread. It has impact on costing. Different kinds of test like colorfastness test, construction
test, performance test, strength & stretch test, water resistance/rain test, accessories test, print durability, garment
appearance after cleaning, pocket reinforcement, dimensional change after home laundering, subsidiary test may
increase the costing of garments. Commercial cost means the extra cost that excluding CM cost. Sometimes transport
costs also need to pay. After developing product manufacturer need to send products through courier and this cost
also including in commercial cost. Financial cost indicates that cost which company incurs through operations, from
factory cost to surcharge down the supply chain. Such the cost of raw material, semi-finished products, and
completely finished goods along with administrative expense like rent, salaries, insurance, and utilities. Different
shipping terms like FOB, CNF, and CIF are highly related to costing. Manufacturer profit is also responsible for
costing.

2.3. Overall Consumption & Costing of Denim Pant

Measurement specification sheet for denim pant (Table 3), Fabric consumption of a denim pant (Table 4),
Sewing threads consumption of a denim pant (Table 5) and then costing where fabric costing (Table 6), Trims
and accessories cost (Table 7) for that required con- sumption and costing. To find out the final cost sheet (Table 8
and Table 9) and shipment charge as well as packing list (Table 10), the order quantity was taken 50,000 pieces.

2
 Table 3. Measurement specification sheet for denim pant.

Measurements Waist sizes (In inches)

Size S M L XL XXL
Waist Size 28 30 32 34 36
Seat 37 39 41 43 45
Back Crotch (1/4) 14 15 16 161/2 17
Thigh (1/4) 12 13 14 15 16
Knee 14" below crotch 17 3/8 18 1/8 18 7/8 19 5/8 20 3/8
Bottom 16 7/8 17 3/8 17 7/8 18 3/8 18 7/8
Front Rise 10 10 1/2 11 11 1/2 12
Back Rise (including yoke) 13 1/4 13 3/4 14 1/4 14 3/4 15 1/4
Inseam 32 32 32 34 34
Front Pocket width 5 5 51/2 6 6
Front Pocket depth 3 3 31/2 31/2 31/2
Front Pocket bag width (on fold) 5 5 51/2 6 6
Front Pocket bag depth (on fold) 3 14 31/2 31/2 31/2
Back Pocket width 6 6 61/2 61/2 61/2
Back Pocket length 51/2 51/2 6 6 6
Waist belt height 2 2 21/2 21/2 21/2
Belt Loop Length 21/2 21/2 21/2 21/2 21/2
Belt Loop Width 1/2 1/2 1/2 1/2 1/2
Coin Pocket Length 31/2 31/2 31/2 31/2 31/2
Coin Pocket Width 3 3 3 3 3
Hem height 1 1 1 1 1
Allowance 1/2 1/2 1/2 1/2 1/2

2.4. Fabric Consumption (Table 4)

Table 4. Fabric consumption of a denim pant.

3
2.5. Sewing Threads Consumption of a Denim Pant (Table 5)
Table 5. Sewing threads consumption of a denim pant.

Seam Total
Sl. Process M/C or Stich Unit
length (inch)

4 1 yoke join with back part 4TO/L(514) 16 18.5 296

2 top stitch on back part MTCS(401) 32 5.5 176

3 back raise joint 4TO/L(514) 13.75 18.5 254.37

4 top stitch on back raise MTCS(401) 27.5 5.5 151.25

5 pocket hem 2NLS(301) 12 2.5 30

6 pocket attach to back SNLS(301) 68 2.5 170

7 front raise (right & left) individually 3TO/L(504) 21 14 294
8 coin pocket hem sewn MTCS(401) 6 5.5 33

9 coin pocket attach with right facing DNLS(301)/SNLS(301) 20 2.5 50

10 individually both facing overlock 3TO/L(504) 12 14 168

11 facing attach to pocket bag SNLS(301) 12 2.5 30

12 pocket bag attach to front SNLS(301) 12 2.5 30

13 pocket edge top stitch 2NLS(301) 24 2.5 60

14 pocket opening mouth closed 3TO/L(504) 12 14 168

15 pocket bag turn & edge top stitch SNLS(301) 12 2.5 30

16 single ply edge overlock 3TO/L(504) 6 14 84

17 double ply edge overlock 3TO/L(504) 12 2.5 30

18 single ply attach to front left side SNLS(301) 6 14 84

19 single ply edge top stitch SNLS(301) 6 14 84
20 zipper attach to double ply SNLS(301) 6 2.5 15
21 double ply attach to front right side SNLS(301) 6 2.5 15
22 double ply turn and edge top stitch SNLS(301) 6 2.5 15
23 zipper open side attach to single ply SNLS(301) 6 2.5 15
24 single ply top stitch SNLS(301) 16 2.5 40
25 front raise closed to inseam SNLS(301) 10.5 2.5 26.25
26 front raise top stitch SNLS(301) 10.5 2.5 26.25
27 side seam closed 4TO/L(514) 91.5 18.5 1692.75
28 edge top stitch on back SNLS(301) 16 2.5 40
29 bottom hemming SNLS(301) 56 2.5 140
30 inseam closed 4TO/L(514) 64 18.5 1184
31 waist belt attach MTLS(401) 30 5.5 165
32 waist belt top stitch MTLS(401) 32 5.5 176
33 waist belt loop making 2N Flat lock(406) 17.5 18 315
34 button hole Button hole m/c 3 10 30

4
2.6. Trims and Accessories Consumption for a Denim Pant
Basically to make denim pant some trims and accessories are required according to the style or requirements of
consumer demand. Designers estimate required fabric with trim and accessories and related all materials according
to design [6]. For completing a denim pant normally, the required common trims & accessories are: main label, zipper,
care label, rivets, price ticket/UPC ticket, hanger/sizer, size sticker, interlining, match book, adjustable elastic
button (if required), trim-fabrics sewing thread 100% spun polyester-ASTRA, pocketing fabric snap/shank
button, poly carton. These are the commonly used trims & accesso- ries for denim pant. In the study was used
main label, care label, price ticket, zipper, rivets, adjustable elastic, cotton fused interlining, sewing thread 100%
spun polyester, snap/shank button, extra label, poly, and cartoon.

2.7. Wash Required for Denim Pant

For a denim pant, some important washes are required to enhance the appear- ance and to make it more attractive.
There are two (dry and wet) processes for denim washing. Dry process -hand stand, grinding, whisker, crinkle,
laser whisker, 3-D crinkle, destroy, PP rubbing, PP spray, resin spray, tagging, heat pressing, pocket marking,
center crease, seam marking, crease mark all over, tint, blowout, patch attaching, chevron/knee star. These are the
commonly used dry washes for a denim pant. In the study only use hand stand, whisker, PP spray, tint. Wet
process: rinse wash, cold pigment wash, cellulose wash, ice-or snow was, enzyme wash, tinting, enzyme stone with
bleach, net bleach, caustic wash, resin wash, acid wash, milk wash, random bleach wash, and tie wash [7]. These are
the commonly used wet processes for a denim pant. In the study was used only enzyme stone with bleach.

2.8. Test Required for Denim Pant

Physical test and lab test, two types of testing are required for denim pant. Phys- ical test-fabric count, seem slippage,
yarn count, fabric weight, colorfastness to crocking, crease retention, colorfastness to rubbing, stretch & recovery,
color- fastness to water, abrasion resistance, colorfastness to sea water, soil release, co- lorfastness to phenolic
yellowing, cpsia, colorfastness to non-chlorine bleach, spiraled/twisting, seem twist (spirality test), tear strength,
smoothness retention, tensile strength, pilling resistance, button attachment strength. In the study was used only
seem twist, pilling resistance, soil release, crease retention. Lab test-formaldehyde, absorbency test, PH, moisture
test, AZO. Formaldehyde, PH and AZO test were used in this study.

2.9. Poly and Cartoon Consumption for Denim Pant

For this particular order, 1 piece of polybag is needed per garment. Total area of a carton: Formula (L + W) × (W +
H) × 2/100 × 100 Sq.mt. Normally one car- toon contains twelve pieces of garments. So, total cartoon is required
for 50,000 pieces are
50,000 ÷ 12 + 2% wastage = 4250 pieces’ cartoons (1)

3. Costing of Denim Pant

3.1. Fabric Costing
For this particular denim pant 1.575 yards per piece of shell fabric is required from consumption. To purchase or
import fabric manufacturer not only has to pay $2.63/yard but also freight, financial cost 3% per yards. So for
purchasing fabric these payments have to be ensured (Table 6).

3.2. Trims and Accessories Cost

Trims and accessories are the most valuable component for a garment. So total trims and accessories cost for a
denim pant is shown below (Table 7).

5
3.3. Washing Cost for a Denim Pant
Washing cost for this particular pant: hand sand $0.25, PP spray $0.20, tint $0.15, whisker $0.25, enzyme stone with
bleach $0.55. So, total washing cost $1.40.

Table 6. Fabric costing.

Description Consumption Cost $/yard Price in $

Fabric 1.575 yards $2.63 (CFR Bangladesh at 120 days sight LC) $4.14

Pocketing fabric 0.229 yard $1.15 (BD local miller price) $0.263

Table 7. Trims and accessories cost

Description Cost in $

care label 0.04

main label 0.03

extra label (traceability label) 0.02

price ticket 0.02

poly 0.05
cartoon 0.10

thread 100% spun polyester 0.20

zipper 0.12
snap/shank (1 pcs) 0.07

rivets 4 pcs 0.08

adjustable elastic-3/4" 0.08

adjustable elastic button-22l 0.02

T/C pocketing 0.12

cotton fused interlining 0.05

Total cost 1.00

3.4. Cost of Making Charge (CM)

The name of the factory which was used in this study for denim manufacturing was ignored for the point of
economical view. The factory per month direct & indirect cost $250,000, total line 10, number of machine per line
60, total num- ber of machine 600, number of working days per month 26, per hour per line output 150 pcs, daily
working hour 8 hours. So, our CM cost is as following,
Average cost per machine of per day
Total Direct & Indirect Cost 250, 000 (2)
   16.03
Total no. of Machine  No.working day per month 600  26
Line cost per day  per day 8 hours machine cost  No of machine per line
(3)
 16.03 60  961.8
Actual output per line per day  Working hour per day  Output per hour
(4)
 8150  1200
Line cost per day 961.8
CM cost per piece    $0.80 (5)
Actual Output per line per day 1200

Total CM cost  Total CM cost $0.80  add profit 20% of CM cost is$0.16
(6)
 $0.96
6
3.5. FOB Costing
FOB costing is one of the most important and significant costing for a manufac- turer. So, total FOB costs for a basic
denim pant including its all costs are calculated. FOB cost for a single denim pant is $8.083
Table 8. FOB costing.

Description Cost in $

Shell Fabric Cost 4.14

Pocketing Fabric 0.263

Trims and Accessories Cost 1.00

Washing Cost 1.40

CM Cost 0.96

Test Cost (approximate) 0.08

Total Cost 7.843

Commercial Cost and Financial Charge 3% 0.24

FOB Cost $8.083

Table 9. FOB costing sheet.

SHEEL DESCRIPTION OF FABRICS Fabric cut Width PRICE COST
Fabric 99% cotton, 1% elastic fabric 62 $2.63 $4.14
Pocket 100% cotton twill 40 $1.15 $0.263
TRIMS/ACCESSORIES
Description Unit Cost
Main Label 1 $0.03
Care Label 1 $0.04
Ext label (traceability label) 1 $0.02
Price Ticket 1 $0.02
Packing 1 $0.15
Thread 100% spun pollster $0.20
Zipper 1 $0.12
Snap/Shank 1 $0.07
Rivets 4 $0.08
Adjustable elastic-3/4 $0.08
Adjustable elastic button-22L 1 $0.02
Button (27L & D_CS-BLM) 1 $0.10
Cotton fused interning $0.05
Test Cost $0.08
Wash (Whisker + Hand send +PP +Tint+ Enzyme stone with bleach) $1.40
CM $0.96
Total Cost $7.843
Commercial Cost and Financial Charge 3% 0.24
FOB Cost $8.083

7
Fabric consumption is 1.575 yards per piece for shell fabric where the cost is total of $4.14 as per yard price is $2.63.
For pocketing fabric, it needs 0.229 yard yards’ fabric per piece. Price of pocketing fabric per yard is $1.15 where price
per piece is $0.26 only. Trims and accessories cost is $1, washing cost $1.40, CM cost
$0.96, Testing cost $0.08 and other cost is $0.24. Thread is a part of trim and so thread cost was included within
the trim cost. For consuming the thread cost thread consumption was done and the result is 170.96 meter per
piece. CM cost was also found by CM calculation using formula.
So, total FOB cost for one-piece pant is found $8.083. As the order was of 50,000 pieces total FOB cost per order
was $404,150. The results demonstrate two parts first, FOB cost and second, the cost of a RMG unit and supply
chain cost. In cost of a RMG unit major percentages is of material cost 62% and for supply chain retain shop and
other cost which contains 50%.
In Figure 1, information is clearly demonstrated the percentage of total Shell fabric cost, pocketing fabric cost, trims
and accessories cost, washing cost, CM cost and other. Within the total FOB price majority of the price is needed for
fa- bric. Fabric cost is holding approximately 47% of total cost. With the shell fabric Pocketing fabric cost, Trims and
accessories cost, washing cost, CM cost, testing cost and other cost is holding chronologically 0.86%, 14.39%,
20.14%, 13.81%, 1.15 and 2.88%.

4. Conclusion
Denim pant costing is one of the most important factors for its competitive market. Without a competitive price,
it’s very difficult to exist in global market. By this full report, total FOB price for a basic denim pant is demonstrated
chro- nologically including its all relevant costing factors. So from the study, it can be stated that approximately
$8.083 is needed to provide very basic item. Cost can be fluctuated with its test, washing and item variations. So
during costing shell fabric, pocketing fabric, trims and accessories, washing, CM and other cost are the major
factors during costing. These are the basic areas where the cost is cal- culated. Cost can be changed sharply with
different industries but in a small

Figure 1. Percentage of different cost from total FOB cost.

range. Major costing price covers for fabric and washing. So manufacturer can change the price by increasing or
decreasing in these areas only. If the price is reduced, it has to be in fabrication and washing, because these two
cover the most part. So following the total process of costing can help reader to have the idea how denim costing
is done and which are factors that directly influence. This will also indicate how and where the changing of price
can be possible and within which range.

8
References
[1] Chandela, N. (2018) Garment Technology. https://www.slideshare.net/nisthachandela/garment-
technology
[2] Armstrong, H.J. (2000) Pattern Making for Fashion Design. Dorling Kindersley, In- dia, 10-11.
[3] Gandh, P., Poonkuzhali, D. and Kishore Kumar, M. (2015) Effective Cost Analysis Model for Apparel Industry.
International Journal of Applied Engineering Re- search, 10, 20263-20276.
[4] Choudhary, A.S. (2015) Cost Analysis in Garment Industry. International Journal of Recent Advances in Multidisciplinary
Research, 2, 0702-0704.
[5] Sarkar, P. (2015) Product and Process Costing in Garment Manufacturing.
https://www.onlineclothingstudy.com/2015/10/product-and-process-costing-in-gar ment.html
[6] Camargo, M., Rabenasolo, B., Jolly-Desodt, A.-M. and Castelin, J.-M. (2003) Appli- cation of the Parametric Cost
Estimation in the Textile Supply Chain. Journal of Textile and Apparel, Technology and Management, 3, 1-11.
[7] Akhi, A. (2019) Latest Dry Washing Techniques in Denim Garments (Part-1).
https://textilelearner.blogspot.com/2016/03/latest-dry-washing-techniques-in-deni m1.html