Subscribe For Free Updates!

We'll not spam mate! We promise.

Typical Costing of a Product in Export Oriented Garment Industry


Typical Costing of a Product in Export Oriented Garment Industry
Mayedul Islam
Merchandiser at Fashion Xpress Buying House
Badda, Dhaka, Bangladesh.
Email: mayedul.islam66@gmail.com



Introduction:
Costing is very important for a productive factory. Without proper costing all production curriculums will go vain. Because a factory cannot reach to its goal without achieving good profit and good profit is not possible without skillful costing.
Costing of the product:

Let, price of yarn is $ 3.00/kg
Process loss of yarn for knitting (10%) = $0.30
Knitting fabric cost = $3.30
Cost of dyes & chemicals = $2.50
Process loss for dyeing (12%) = $0.30
Dyed fabric cost = $6.10
Packing cost = $0.05
Production cost of fabric = $6.15
Fabric price (with 25% margin) = $7.79

Fabric consumption/doz, 

   (Body length + Sleeve length + 10) x Chest length x 2 GSM x 12
= …………………………………………………………....................………
                                            10000000

Garment specification:

Body length = 78 cm
Sleeve length = 33 cm
Chest length = 62 cm
GSM = 210

                                           (78 + 33) x 62 x 2 x 210 x 12
Fabric consumption/doz. = ………………………………
                                                            1000
= 3.469 kg

Fabric consumption/doz (with 10% wastage) = 3.816 kg
Body fabric cost/doz = $(7.79 × 3.816) = $29.73
Cost of collar & cuff/doz = $4.00
Cost of trims = $2.25
Cost of trims (with 5% process loss) = $2.36
Production cost of garment/doz = $36.09
Garment price/doz (with 25% profit) = $45.12

If You Like Then Please Share It
SOCIALIZE IT →
FOLLOW US →
SHARE IT →

0 comments:

Post a Comment