Calculation of Garment Costing

Calculation of Garment Costing
Noor Ahmed Raaz
B.Sc. in Apparel Manufacturing
Asst. Merchandiser
Opex Sinha Group, Narayongonj
Email: raju.uttara72@yahoo.com




Garment Costing:
For garments costing a merchandiser needs to have clear conception on some important terms.They are-

  1. Fabric Consumption
  2. Fabric Cost
  3. Accessories Cost
  4. Print/Embroidery/Washing Charge
  5. C.M.
  6. Freight (C & F)
  7. Payment mode (at sight deferred payment 60days or 90 days or 120 days, TT, Sales Contract) 
Garment costing
Example of garment costing calculation:
The calculation of garment costing is given by assuming the following dimensions for polo neck T-shirt, 
  • No. of pieces = 4000,
  • Salary of the operator =6240 tk/month=80$/month,
  • No. of working days = 26,
  • Line efficiency considered= 50%,
  • Sewing SAM= 15 min.,
  • Cutting SAM= 7 min. 1$ =78 taka
  • Chest = 60 cm,
  • Length (HSP to waist) = 75 cm,
  • Sleeve length = 25 cm
  • Fabric used is 2/60s 100% cotton S/J fabric.
  • GSM is 180
Solution
The fabric consumption can be calculated as

= [{(B.L +S.L + 4-10 cm) ×( ½ chest+ 2-4 cm) ×2}×GSM ] / 10000000
= [{(75+25 + 4) ×( 60+ 2) ×2}×180 ] / 10000000
= 0.232 + Wastage 10% [if consider 10% wastage]
= 0.255 kg/dozen

CMT (cost of making with trimming) charges may be calculated as follows

Labour cost per minute = (Monthly salary of an operators/Total minutes available in the month

= 6240/ (26×8×60)
= 0.5 tk.

Sewing cost = (SAM of the garment * Minute cost of the labour) / Line eff%

= 15*0.5 / 50%
= 15 tk.

Cutting cost = (SAM of cutting * Minute cost of the labour) / cutting efficiency (%)

= 7*0.5 / 50%
= 7 tk.

Now trimming cost is considered as 3 tk. but it depends how number of operators are there for trimming .

CMT = sewing cost + cutting cost + trimming

= 15+ 7+ 3
= 25 tk.