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    T-Shirt Garments Costing

    Uploaded by

    Md. Al-Amin Ahmed
    1) The document discusses the proper costing method for knitted t-shirts in the garments industry. It outlines key costs that must be considered like yarn price, knitting and washing costs, dyeing, printing, and more. 2) It provides an example of calculating the costs for a 15,000 piece order of 100% cotton, single jersey t-shirts. Fabric consumption is calculated based on measurements. Actual fabric cost is determined by adding grey fabric costs and processing costs. 3) Total FOB cost per dozen is calculated by adding actual fabric cost, printing, accessories, labor and other costs. With a 15% profit margin, total FOB cost per piece is $4.

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    T-Shirt Garments Costing

    Uploaded by

    Md. Al-Amin Ahmed
    413 views3 pages
    1) The document discusses the proper costing method for knitted t-shirts in the garments industry. It outlines key costs that must be considered like yarn price, knitting and washing costs, dyeing, printing, and more. 2) It provides an example of calculating the costs for a 15,000 piece order of 100% cotton, single jersey t-shirts. Fabric consumption is calculated based on measurements. Actual fabric cost is determined by adding grey fabric costs and processing costs. 3) Total FOB cost per dozen is calculated by adding actual fabric cost, printing, accessories, labor and other costs. With a 15% profit margin, total FOB cost per piece is $4.

    Original Description:

    Fabric consumption

    Original Title

    T-shirt garments costing

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    1) The document discusses the proper costing method for knitted t-shirts in the garments industry. It outlines key costs that must be considered like yarn price, knitting and washing costs, dyeing, printing, and more. 2) It provides an example of calculating the costs for a 15,000 piece order of 100% cotton, single jersey t-shirts. Fabric consumption is calculated based on measurements. Actual fabric cost is determined by adding grey fabric costs and processing costs. 3) Total FOB cost per dozen is calculated by adding actual fabric cost, printing, accessories, labor and other costs. With a 15% profit margin, total FOB cost per piece is $4.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    413 views3 pages

    T-Shirt Garments Costing

    Uploaded by

    Md. Al-Amin Ahmed
    1) The document discusses the proper costing method for knitted t-shirts in the garments industry. It outlines key costs that must be considered like yarn price, knitting and washing costs, dyeing, printing, and more. 2) It provides an example of calculating the costs for a 15,000 piece order of 100% cotton, single jersey t-shirts. Fabric consumption is calculated based on measurements. Actual fabric cost is determined by adding grey fabric costs and processing costs. 3) Total FOB cost per dozen is calculated by adding actual fabric cost, printing, accessories, labor and other costs. With a 15% profit margin, total FOB cost per piece is $4.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Garments Costing Method for Knitted T-Shirt (Buying

    Costing):
    In the garments sector, a business is totally standing on the profit of garments costing.
    There are so many in knit garments merchandising who still don’t know the proper
    garments costing method for a T-Shirt. As its importance on garments profit, today I will
    discuss the easiest costing method for a knitted T-Shirt.

    Method of Garments Costing for the knitted T-Shirt:


    At first, a knit garment merchandiser should confirm the following matters before going
    to the knitted T-shirt costing:
    1. Yarn Price,
    2. Knitting and Washing Cost,
    3. Dyeing Cost,
    4. Printing cost,
    5. Cost of Making (CM),
    6. Accessories Cost,
    7. Commercial Cost,
    8. Others Cost.
    The second duty is to calculate fabric consumption and costs.
    ▪ Generally, 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.
    ▪ Then finally all the other necessary costs should be added with the actual
    fabric cost to achieve the total cost of a garment.
    An example of knitted T-Shirt costing is given in the following for removing all confusion
    about the above discussion.

    Example:
    Suppose,
    The buyer “VF Asia Ltd. ” provided you the following measurement chart of a knitted
    printed T-Shirt order by mentioning the order quantity and fabric GSM.
    1. Fabric is 100% cotton single jersey, and fabric GSM is 140
    2. The order quantity is 15000pc.
    Then calculate the garments costing (on FOB) per pcs for the order.
    Measurement
    Actual Allowance with Allowance

    Body
    Length 85cm 6cm 91cm

    Sleeve
    Length 50cm 6cm 56cm

    1/2
    Chest
    Width 70cm 6cm 76cm
    Solution:
    Given that,
    Fabric GSM- 140,
    Body length with allowance- 91cm
    Sleeve length with allowance – 56cm
    ½ Chest widths with allowance – 76cm
    Let,
    Yarn Price per kg- $4.00
    Knitting and Washing Cost per kg- $1.20
    Dyeing Cost per kg- $2.00
    Printing Cost per dozen- $5.00
    Accessories Cost per dozen- 2.00
    Now, we have to calculate the fabric consumption for the above order.
    Fabric Consumption:
    All the measurements are applied in the following formula-
    Fabric consumption per dozen, (All measurement in cm),

    = 3.754 + 10% (in kg)


    = 4.13kg per dozen.
    So, grey fabrics needed per dozen garments are 4.13kg.
    As yarn price per kg is $4.00 then, grey fabric cost per dozen is (4.13kg × $4.00) =
    $16.52
    After, adding all the fabric processing costs (Knitting+ Washing Cost, Dyeing Cost) with
    grey fabrics cost, the actual fabric cost will be determined.
    So,
    Actual fabric cost = Total Grey fabric cost + {{(knitting cost + washing cost) + dyeing
    cost} × 4.13kg] per dozen
    = $16.52 + {($1.20 + $2.00) ×4.13} per dozen
    = $29.74 per dozen.
    So, the actual fabric cost per dozen is………. $29.74 ………………………… (A)
    Printing Cost per dozen……………………… $5.00 ………………………. (B)
    Accessories Cost per dozen……………….…$ 2.00 ……………………… (C)
    Cost of making (CM)……………………………. $5.00 ……………………… (D)
    Commercial cost …………………………………. $0.50 ……………………. (E)
    Others cost …………………………………………. $0.30 …………………… (F)
    Now, by adding A, B, C, D, E, and F, we will get the total FOB cost of the garments per
    dozen.
    Total FOB cost per dozen = (A +B + C + D+ E + F)
    = $ (29.74 + 5.00 + 2.00 + 5.00 + 0.50 + 0.30)
    = $42.54 per dozen.
    So, the total FOB cost per dozen stands at-$42.54
    In buying house costing, profit% for the buying house (here-15%) should be added with
    total FOB cost per dozen.
    So,
    Total FOB cost per dozen with profit% stands at ($42.54 + 15%) = $48.92
    Now, total FOB cost per pcs clothing is ($48.92 / 12) = $4.08
    So, in the view of buying house costing (FOB) per pcs garment is $4.08

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