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Costing Calculation for Men’s T-shirt

Costing Calculation for 1 Dozen Men’s T-shirt
Noor Ahmed Raaz
Asst. Merchandiser
A.M.C.S Textile Ltd
Email: raju.uttara105@gmail.com



T-shirt Costing:
In order to achieve perfect garment costing, one must know about all the activities including purchase of fabrics, sewing, packing, transport, overheads, etc and also about their costs, procedures, advantages and risk factor. Like other garments the method of t-shirt costing varies from style to style since there are different styles in men’s t-shirt. A garment merchandiser needs to have clear conception of the raw materials price & garments cost of making (CM) calculation of knit garments. Because profit defends on optimum costing. Following one is the sample costing sheet for basic concept.
Costing of Men's T-shirt
Costing of Men's T-shirt
Table: Costing Calculation for 1 Dozen Men’s T-Shirt
Unit
Price
Costing
Fabric Consumption 1.94 kg/dz
$ 6/kg
$11.64/kg
Accessories
$3.5/dz
$3.5/dz
CM (Cost of Manufacturing)
$4/dz
$4/dz
Total

$19.14/dz
Costing of Men's T-shirt:
  1. Direct Cost (Raw Materials) = $19.14/dz
  2. Indirect Cost (15% of Direct Cost) =$ 19.14*15%=$2.871
  3. Total Cost (Direct Cost + Indirect Cost) = $19.14+$2.871= $22.011
  4. Profit (7% of Total Cost) = $22.011*7% = $1.55
  5. Price for 1 Dozen Men’s Shirt (Total Cost + Profit) = $23.55
So, Price of 1 Dozen of Men’s T-Shirt is $23.55

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