Costing sheet preparation for knit Garments:
Costing Sheet of Knit Garments
Buyer H&M Date 20.08.2015
Style H.M-03 Delivery 15.09.2015
Description Knitted polo shirt Quantity 10000pcs
Fabrication 100% cotton piquet
Size M
factory H.N Apparels Ltd.
Yarn 100% cotton (30/1) carded
GSM 180
Wash Instruction Silicon wash
(Fabric cost + Processing) Per Dozen
Fabrication Item Consumption Unit Amount ($)
price($)
100% cotton Piquet Solid 180 Yarn 3kg 3.50 10.5
GSM Knitting 3kg 0.30 0.9
100% cotton 1×1 Rib Collar Dyeing 3kg 1.20 3.6
+ Cuff
Total (Fabric cost + Processing) Per Dozen) per dozen 15.00
Accessories
(Trimmings+ Packing + Embellishment) cost per dozen
Accessories Main Label 0.25
(Trimmings+ Packing + Care Label 0.15
Embellishment) cost per Sewing 1.00
dozen Thread
Eyelet –
Elastic –
Twill Tape –
Drawstring –
Embroidery –
Print 3.00
Washing 5.00
Button –
Zipper 0.60
Hanger –
Hang Tag 0.40
Poly Bag 0.50
Carton 0.90
Others 0.10
Total Accessories (Trimmings+ Packing + Embellishment) cost per dozen 11.9
Lab Test (Fabric and Garments) per dozen –
Total (Fabric + Accessories+ Lab test) cost per dozen 26.9
Cost of making (CM) including profit per dozen 10.00
Commercial cost 4% of total (Fabric + Accessories+ Lab test) cost per 1.08
dozen
Total price per dozen 37.98
FOB price per pc 3.17
Note: You can download from here by clicking (Costing Sheet for Knit Garments or Apparel) in
Excel format which is prepared by our Honorable Brother HM Tareq Imran (Sr. Merchandiser
of Fashion Xpress Buying House)
Costing Method of Sweater Garments (Factory Costing):
In garments merchandising, costing is the main process among all the other processes. If the
garments merchandiser can contract a healthy costing of order then all the remaining processes
will be easy to complete. As its importance in garments merchandising, today I will discuss the
costing calculation method of sweater garments in this article.
Costing of Sweater Garments
Costing Calculation Method of Sweater Garments (Factory Costing):
Before costing sweater garments, a sweater garments merchandiser should confirm the following
items:
1. Yarn Cost per lbs,
2. Embroidery Cost per dozen,
3. Printing Cost per dozen,
4. Cost of Making (CM) per dozen,
5. Washing Cost per dozen,
6. Accessories Cost (Zipper, button, etc.),
7. Commercial Cost per dozen,
8. Others Cost per dozen.
The next duty of a sweater garments merchandiser is to determine the yarn consumption and
costs.
Yarn cost can be calculated by using the following formula,
= [{(Garments weight in lbs per dozen) + wastage %} × Yarn price per lbs]
Generally, we have added 10-20% wastage depends on styling.
After yarn costing, all the other necessary costs should be added to the total yarn cost to achieve
the total cost of a garment.
Now, one example is enough to clear all the confusion about the above discussion.
Example:
Suppose,
The buyer “world Fashion” forwards a sweater order to you by mentioning the following terms:
Yarn: 100% Bright Acrylic, 2/52” S
Weight: 255gm (2ply)
Knitting: 12 GG plain knit in body, (1×1) Rib at bottom and sleeve opening,
Specifications: Plain knit placket, slit, 2 pockets.
Now, calculate the garments costing of the above order.
Solution:
Let,
Yarn Cost per lbs- $4.00
Embroidery Cost per dozen- $1.00
Printing Cost per dozen-$1.00
Cost of Making (CM) per dozen- $30.00
Washing Cost per dozen- $5.00
Accessories Cost (Zipper, button, etc.)- $5.00
Now,
Yarn costing per dozen garments:
As garments weight is 255gm for 1pc then for 1dozen garments, yarn needed (255 × 12),
= 3060 gm
= 6.74lbs (1lb = 453.6gm)
After adding 12% wastage, the total yarn needed- 7.55lbs
So, yarn cost per dozen stands at- $(4.00 × 7.55) = $30.20
By adding all the following costs with the total yarn cost, we will get the total FOB cost of
garments per dozen.
Yarn cost per dozen ………………………… $30.20 ………………………. (A)
Printing Cost per dozen ……………………..$1.00 ……………….………… (B)
Embroidery Cost per dozen ……………… $1.00 …………………………. (C)
Accessories Cost per dozen ………………..$5.00 …………………………. (D)
Washing cost per dozen …………………… $5.00…………………………… (E)
Cost of making (CM)………………………. $30.00 ………………………….. (E)
Commercial cost ……………………………. $1.00 …………………………….. (F)
Others cost ……………………………….…. $0.50 …………………………….. (G)
So,
Total FOB cost per dozen = (A + B + C + D + E+ F + G + H)
= $ (30.20+ 1.00+ 1.00+ 5.00+ 5.00+ 30.00+ 1.00+ 0.50)
= $73.70 per dozen.
In the case of the factory, we received the order from a buying hose (Here, we got the order from
(“world fashion” Buying House), so we have to pay 7%commission to them for that order.
So, in this situation, total FOB cost per dozen stands at-
= $73.70 per dozen + 7% commission
= $78.86 per dozen.
In the case of factory costing, profit% for the factory (here-10%) should be added with total FOB
cost per dozen.
So,
Total FOB cost per dozen with profit% stands at ($78.86 + 10%) = $86.75
Now, total FOB cost per pcs is ($86.75 / 12) = $7.23
So, factory cost (FOB) per pcs clothing is $7.23
Speech from the writer:
This article only shows the calculating method. Don’t be disappointed about its result. All the
numbered used here for completing the calculation only. So, please, don’t make any comments
about the calculating result. You can pass your comment, advice just about the calculating
method.
Mayedul Islam
Mayedul Islam is a Founder and Editor of Garments Merchandising. He is an Expert in Garments
Merchandising. Writing is his passion. He loves to write articles about Apparel, Textile and
Garment Washing specially on Merchandising. Mail him at [email protected]
How to Prepare Costing Sheet for Sweater Garments:
Costing Sheet of Sweater Garments
Buyer BELLE Date 15.08.2015
Style BEL-T-04 Delivery 12.09.2015
Description Women Sweater Quantity 15000pcs
Size M
Factory Meek Sweater Ltd.
Yarn 100% Bright Acrylic 2/52” S
GSM 255
Wash Instruction Silicon wash
Yarn Cost Per Dozen
Yarn Item Consumption Unit Amount ($)
price($)
100% Bright Acrylic 2/52” S Yarn 8lbs 4.00 32.00
Total (Fabric cost + Processing) Per Dozen) per dozen 32.00
Accessories (Trimmings+ Packing + Embellishment) cost per dozen
Accessories (Trimmings+ Main Label 0.20
Packing + Embellishment) Care Label 0.15
cost per dozen Sewing 1.05
Thread
Elastic –
Eyelet –
Embroidery 1.00
Drawstring –
Washing 5.00
Print 1.00
Button 1.50
Zipper 0.50
Hanger –
Hang Tag 0.45
Carton 1.00
Poly Bag 1.00
Others 0.10
Total Accessories (Trimmings+ Packing + Embellishment) cost per dozen 12.95
Lab Test (Fabric and Garments) per dozen –
Total (Fabric + Accessories+ Lab test) cost per dozen 44.95
Cost of making (CM) including profit per dozen 9.00
Commercial cost 4% of total (Fabric + Accessories+ Lab test) cost per 1.80
dozen
Total price per dozen 55.75
FOB price per pc 4.65
Before starting of a knitted polo shirt garments costing, a knit garments merchandiser must
be known about the following matters:
1. Yarn Price,
2. Knitting and Washing Cost,
3. Dyeing Cost,
4. Embroidery Cost,
5. Printing cost,
6. Accessories Cost,
7. Cost of Making (CM),
8. Commercial Cost,
9. Others Cost.
Important tips***
The 2nd duty is to calculate fabric consumption and costs.
Normally, we calculate the grey fabric consumption.
After completing grey fabric consumption and costing, all the required fabric processing
costs (knitting+ washing cost, dyeing cost) should be added with grey fabric cost. After
that, we can achieve the actual fabric cost.
At last, all the other necessary costs should be added with the actual fabric cost to achieve
the total cost of a garment.
An example of the knitted polo shirt garments costing methodize presented below:
Example:
Suppose,
One of the buyers named “Ha-Meem Group” forwards a knitted polo shirt item order (20000pcs)
to you with the following specification.
1. 100% cotton single jersey fabric for body parts (Body + Sleeve), Half-moon, and Pocket.
Where fabric GSM is 170.
2. 1 × 1 Rib fabric for collar and Cuff. Where the fabric GSM is 220.
Follow the below measurement chart.
3. Print on Pocket.
4. Embroidery on Back part.
Follow the below measurement sheet.
Actual length Allowance Measurement with
Allowance
Body length 65cm 6cm 71cm
Sleeve length 18cm 6cm 24cm
½ Chest width 50cm 6cm 56cm
Collar length 36cm 0cm 36cm
Collar width 7cm 3cm 10cm
Cuff length 20cm 4cm 24cm
Cuff width 3cm 2cm 5cm
Pocket length 11cm 3cm 15cm
Pocket width 8cm 3cm 11cm
Half-moon length 14cm 3cm 17cm
Half-moon width 7cm 3cm 10cm
Now, determine the garments costing (On FOB) for the above order.
Solution:
Fabric GSM- 170 for the cotton single jersey,
Fabric GSM- 220 for 1 × 1 Rib fabric.
Let,
Yarn Price per kg- $3.90
Knitting and Washing Cost per kg- $1.50
Dyeing Cost per kg- $2.10
Printing Cost per dozen- $3.90
Embroidery Cost per dozen- $6.00
Accessories Cost per dozen- $2.00
Now, we have to calculate the fabric consumption for the above order.
Fabric Consumption:
1. Fabric consumption for Body parts (Body +Sleeve):
Here, we will follow the following formula (per dozen),
= 2.17kg per dozen.
So, fabric consumption for Body parts (Body +Sleeve) is 2.17kg per dozen.
2. Fabric consumption for Collar:
Here, we will follow the following formula (per dozen),
= 0.10kg per dozen.
So, fabric consumption for Collar is 0.10kg per dozen.
3. Fabric consumption for Cuff:
Here, we will follow the following formula (per dozen),
= 0.06kg per dozen.
So, fabric consumption for Cuff is 0.06kg per dozen.
4. Fabric consumption for Pocket:
Here, we will follow the following formula (per dozen),
= 0.03kg per dozen.
So, fabric consumption for Pocket is 0.03kg per dozen.
5. Fabric consumption for Half-moon:
Here, we will follow the following formula (per dozen),
= 0.03kg per dozen.
So, fabric consumption for Half- moon is 0.035kg per dozen.
Now, total amount of cotton single jersey fabric needed for this order is (per dozen),
= [{Fabric consumption for Body parts (Body +Sleeve) + Fabric consumption for Pocket +
Fabric consumption for Half- moon} + wastage (10%)]
= {(2.17 + 0.03 + 0.03) kg + 10%}
= 2.23kg + 10%
= 2.45kg per dozen.
So, cotton single jersey Grey fabrics needed per dozen 2.45kg.
And,
Total amount of (1 × 1) Rib fabric needed for this order is (per dozen),
= {(Fabric consumption for Collar + Fabric consumption for Cuff) + wastage (10%)}
= {(0.10 + 0.06) kg + 10%}
= (0.16kg + 10%)
= 0.18kg per dozen.
So, 1 × 1 Rib Grey fabrics needed per dozen 0.18kg.
Total grey fabric needed to make the polo shirt is – (2.45+ 0.18 = 2.63kg) per dozen
As yarn price per kg is $3.90 then, total grey fabrics cost per dozen is (2.63kg × $3.90) = $10.26
So, the Total grey fabrics cost per dozen is $10.26
Now, adding all the fabric processing costs (Knitting+ Washing Cost, Dyeing Cost) with grey
fabrics cost, actual fabric cost will be determined.
So,
Actual fabric cost,
= Total Grey fabric cost + [{(knitting cost + washing cost) + dyeing cost} × Total grey fabric]
per dozen
= [$10.26 + {($1.50 + $2.10) × 2.63}] per dozen
= $19.79 per dozen.
So, the actual fabric cost per dozen is………. $19.73 ………………….. (A)
Printing Cost per dozen……………………… $3.90 ………………………. (B)
Embroidery cost per dozen ………………… $6.00 ……………………….. (C)
Accessories Cost per dozen……………….…$ 2.00 ………………………… (D)
Cost of making (CM)……………………………. $5.00 ………………………… (E)
Commercial cost …………………………………. $0.55 …………………………. (F)
Others cost …………………………………………. $0.25 ………………………… (G)
Here,
By adding A, B, C, D, E, F, and G, we will get the total FOB cost of garments per dozen for the
above order.
Total FOB cost per dozen = (A +B + C + D+ E + F + G)
= $ (19.73 + 3.90 + 6.00 + 2.00 + 5.00 + 0.55 + 0.25)
= $37.43 per dozen.
So, the total FOB cost per dozen is $37.43
Normally, in case of factor cost, it should bethink that, as we have received the order from a
buying house (Here, we got the order from Ha-meem Group’s Buying House), so we have to pay
8%commission to them for that order.
So, in this condition, total FOB cost per dozen stands at-
= $37.43 per dozen + 8% commission
= $40.42 per dozen.
In factory costing, profit% for the factory (here-10%) should be added with total FOB cost per
dozen.
So,
Total FOB cost per dozen with profit% stands at ($40.42 + 10%) = $44.46
Now, total FOB cost per pcs is ($44.46 / 12) = $3.71
So, the factory cost (FOB) per pcs garment of the above order is $3.71
Speech from the writer:
The main aim of This article is to show the calculating method. Don’t be disappointed about its
result. All the numbered used here for completing the calculation only. So, please, don’t make
any comments about the calculating result. You can pass your comment, advice just about the
calculating method only if there’s any problem.
Besides,
If you read this article attentively then you can easily answer the following questions in the
interview:
1. Clothing costing method for a knitted polo shirt.
2. Garments costing method for a polo shirt.
3. Costing method for a knitted polo shirt.
4. How to calculate knit garment costing?
