Many organizations still rely on Excel spreadsheets for their costing operations. A well-designed cost sheet will help you trace all the details of the cost breakup. As garments costing depends on various aspects, so there is no specific formula for garments costing except this sheet. OneLife 22:20. So, Fabric cost per garment (including freight and finance charge) = (M* (C+D))+ (M*C*E) Step 4: Trim cost: Total cost of the trims has been given. So, ultimately, the garments costing method is the heart of the readymade garments business. with very little variations in labor, product development, and marketing costs. This sheet will give you a basic clear concept regarding garments costing. Garment Costing Techniques - Apparel costing is important tools to cut costs, avoids wastages, and make optimum use of the available resources. Get how to guides to resolve issues in apparel production. For example, If the style has 6 sizes then better to use size number 04 for consumption. based on this formula, that should be my wholesale price and i should charge $77 in the shop. Reply. Afridi November 27, 2018 at 10:43 AM. Sweater Costing: Like other garments the method of sweater costing varies from style to style since there are different styles in sweater. Apparel merchandisers, and garment manufacturing business entrepreneurs do the garment costing and setting the selling price for their orders. 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. 6. Hence let us take some following styles as examples which are in regular use. Cost of Making (CM), After making the garments it is offered to the buyers. As a result, fabric consumption should be done accurately after receiving the order. Knit Fabric Consumption Formula for a Basic T-Shirt Fabric Consumption: Fabric consumption is an important factor in garments merchandising. Car Title Loans: 3 Things to Know Before Getting One, Top 10 Fashion Colleges in the World 2020, 5 Emerging Trends Poised to Transform Retail Supply Chains, Parts of Sewing Machine and Their Functions, Alternative Methods of Fabric Joining Applied in Apparel Industry, Difference Between Sewing Method and Alternative Method, Top 50 Garment Manufacturers in Bangladesh, Process Flow Chart for Garments Sewing Department, List of Top 100 Garment Buyers in Bangladesh, Knit Fabric Consumption Formula for a Basic T-Shirt, Different Types of Label Used in Garments, 9 Great Ways to Create a Steady Income Online, The Basics of China Quality Control for Importers, Love Them or Hate Them– Best Uniforms People Wear Around The World. At glance, it appears to be clean and organized. = 4.13kg per dozen. He has authored 6 books in the field of garment manufacturing. Fabric. Now, we have to calculate the fabric consumption for the above order. Learn how your comment data is processed. So, the total FOB cost per dozen stands at-$42.54 The profit of the order mostly depends on it. 4. Example of garment costing: The example of garment cost is given by assuming the following dimensions for polo neck T-shirt, no. I am learning a lot of things here.. Knit merchandising is not so easy thing whatever consumption is one of the key factor for knit merchandising. In Garments Industry, Costing is an Important part of a merchandiser. Like M, N, O and P. So, Fabric cost per garment (including freight and finance charge) = (M*(C+D))+(M*C*E). Reply Delete. 2. 5. Why Excel sheets are not ideal for garment costing. Fabric consumption per dozen, (All measurement in cm), it took me 15 minutes to make. An important part of the management of the textile mill is the determination of the production costs. Fabric is generally the most significant factor in the costing of a garment. Reply. Knit Garments Consumption Formula | Knit Top and Bottom Consumption 3. So, As its importance on garments profit, today I will discuss the easiest costing method for a knitted T-Shirt. Sleeve length with allowance – 56cm Replies. Following one is the sample costing sheet of knit garments. Regards, Aftab. Whole Business is fully depends on it. 1. All the measurements are applied in the following formula-. I have calculated the fabric-related costs together. Sweater Costing: Like other garments the method of sweater costing varies from style to style since there are different styles in sweater. Fabric GSM- 140, Dear Sir, Cost involves numerous variable factors which are often hard to evaluate accurately and mathematical exactness in difficult to reach. Accessories Cost per dozen- 2.00. 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. Every garments merchandiser should know the actual calculating method of it. In factory costing, profit% for the factory (here-12%) should be added with total FOB cost per dozen. Body length with allowance- 91cm Actual fabric cost = Total Grey fabric cost + {{(knitting cost + washing cost) + dyeing cost} × 4.13kg] per dozen Method of Garments Costing for Woven Long Sleeve Shirt (Factory Costing): If you want o to be a qualified merchandiser, then you must have to know the method of garments costing.In the readymade garments sector, garments costing is a very important port for a merchandiser.As its importance in garments merchandising, today I will present here the garments costing method for woven long sleeve … There are so many in knit garments merchandising who still don’t know the proper garments costing method for a T-Shirt. Calculating the garment costing, poly bag effect on total price of the product. with very little variations in labor, product development, and marketing costs. Various types of packing accessories which are used in garment packing to shipment process. All Rights Reserved. if possible, please send me the costing sheet on excel format my mail--- rhmaftab@gmail.com Thanks ! Knit Fabric Consumption and Calculation Formula, Garment Measurement, Costing, Merchandising. if possible, please send me the costing sheet on excel format my mail--- rhmaftab@gmail.com Thanks ! The Formula of Calculating Garments Cost of Making Considering Whole Factory Cost Monthly Garments Cost of Making (GCM) = (Monthly Total Cost of Garments Operation)/Monthly Total Output Produced by the Factory. I have calculated all sub costs required to find total garment cost. So, grey fabrics needed per dozen garments are 4.13kg. T-shirts, sweaters, undergarments, pyjamas and socks are knits. Afridi November 27, 2018 at 10:43 AM. = 3.754 + 10% (in kg) Successfully Subscribed. Awesome! Men’s Solid Pique Polo shirts, 6. After that, we can achieve the actual fabric cost. In apparel industry, packing accessories which are used for garment packing during garment shipment called packing accessories. Shirt, trouser, sarees, bed spreads, blankets, towels and made ups are woven. If you need this following sheet in other format, then please knock me. A Garment costing will bear approx: 35% to 45% price of a total garment cost. Regards, Aftab. The following two tabs change content below. of pieces = 4000, salary of the operator =6000 Rs./month=120$/month no. Thank you very much nahid bhai to write such kind of fruitful blog concerned to RMG industry. Printing cost, i charge $38 for it in my shop. If you continue to use this site we will assume that you are happy with it. Knit fabrics are usually measured in kilogram whereas it is related to GSM as well. I added extra rows where I need to calculate something to calculate sub costs and necessary information. It is required to Calculate Garments Cost of Making time to time because the main motive of garments manufacturer is to make a profit. 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. Here Total Cost include both fixed and variable Cost of your garments factory for one month It is difficult to know the actual consumption before completion of marker planning but we can get an approximate fabric consumption from sample. for example, a necklace cost me $11.68 to make (using GF and SS materials…but a very simple piece). I need knit garment's costing sheet with formula on excel sheet. 3. of working days = 26, line efficiency considered= 50%, sewing SAM= 15 min., Cutting SAM= 7 min. Commercial cost …………………………………. So, ultimately, the garments costing method is the heart of the readymade garments business. 1$=50INR A proper costing can be done by using the proper garments costing method. Here costing given per pcs wise and dozen wise for your easy understanding. An example of knitted T-Shirt costing is given in the following for removing all confusion about the above discussion. 1. Carton consumption and costing is the most important part for garment merchandiser. Many times it is needed to know how we reach the final FOB of a garment order. Shirt, trouser, sarees, bed spreads, blankets, towels and made ups are woven. 7. So, Total FOB cost per dozen with profit% stands at ($42.39 + 12%) = $47.48 Now, total FOB cost per pcs is ($47.48 / 12) = $3.96 So, the factory cost (FOB) per pcs garment is $3.96 The method of making costing will vary from style to style. This site uses Akismet to reduce spam. 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, Bhi what about the rib or collar consumption, if there is 1*1 rib then what will be the procedure & also mention the polo consumption technique…………………. To calculate the cost of the garment, I will first create a table in excel sheet. Following one is the sample polo shirt costing sheet for basic concept. Now, by adding A, B, C, D, E, and F, we will get the total FOB cost of the garments per dozen. Step 3: Calculate fabric cost per garment (N): Factory has incurred a cost in insurance and freight and finance charge. Otherwise, a factory may fall into a huge loss. This form of costing strategy is very effective for companies manufacturing basic garments like basic T-shirt, jeans, khakis, classic suits, etc. = $42.54 per dozen. Students in the apparel merchandising and apparel production fields also need to learn garment costing … Total FOB cost per dozen with profit% stands at ($42.54 + 15%) = $48.92 1. So, the actual fabric cost per dozen is………. To make an accurate costing of order, today I will discuss the method of garments costing for the woven bottom. (E) Below is an example of an effective direct costing method to price a new product being added to a basic shirt line. Garments costing . Given that, How many quantity of fabric needed to finish a garment that is called fabric consumption. Boys yarn striped T-shirts (Engin… Enjoy reading our free contents. Knitting and Washing Cost per kg- $1.20 Fabric accounts for 60 to 70% of the total cost of basic-styled garments. Fabric accounts for 60 to 70% of the total cost of basic-styled garments. This sheet can be followed for all other knit garments. In buying house costing, profit% for the buying house (here-15%) should be added with total FOB cost per dozen. Fabric is generally the most significant factor in the costing of a garment. Replies. Apparel merchandisers, and garment manufacturing business entrepreneurs do the garment costing and setting the selling price for their orders. Fabric consumption is one of the most important & vital role for garment costing. Total garment cost = (Fabric cost + Trim cost + Thread cost + Labor Cost), [getWidget results="6" label="recent" type="list"], [getWidget results="6" label="apparel%20news" type="list"]. This is really very easy to understand and helpful, thanks a lot! Introduction: Garments costing is an important part for an apparel merchandiser.Whole business is totally depends on it. Fabric. Below is an example of an effective direct costing method to price a new product being added to a basic shirt line. Garments Costing: Garment costing is a very important part of export garments business. Ladies Nightdress, 4. 6.1 Garment Costing According to ICMA London, Cost Accounting is that part of Management Accounting which establishes budgets and standard costs, and actual cost of operations, processes, departments or products and the analysis of variances, profitability and social use of funds. Woven Garments Costing Sheet: Do necessary costing before taking Garments orders because costing very important work for garments merchandising.This article has three types of garments costing, include all trims and accessories costing and fabric costing. = $ (29.74 + 5.00 + 2.00 + 5.00 + 0.50 + 0.30) $29.74 ………………………… (A) He must to know below important factors for … Copyright OnlineClothingStudy.com. Knitting and Washing Cost, A proper costing can be done by using the proper garments costing method. Reply Delete. 2. A web resource for learning apparel manufacturing. Required fields are marked *. Printing Cost per dozen- $5.00 Dyeing Cost, Your email address will not be published. Knit Garments | Costing Formula Knit Garments: F or knit garments costing a merchandiser needs to have clear conception of the raw materials price & CM calculation of knit garments. There are two types of garments, namely woven and knitted garments. Dyeing Cost per kg- $2.00 Printing Cost per dozen……………………… $5.00 ………………………. Men’s Printed Polo shirts, 3. Mayedul Islam is working as a Sr. Merchandiser in a reputed Buying House. A cost sheet makes the job of garment sample costing easier and faster. This sheet can be followed for all other knit garments. 2. 4.2. Accessories Cost per dozen……………….…$ 2.00 ……………………… (C) Following one is the sample costing sheet for basic concept. = $16.52 + {($1.20 + $2.00) ×4.13} per dozen = [ {825+550}*400*6.45]/10000 grams = 354.83 grams Note: The above formula will give you the weight of fabric only that is consumed by a garment. Then calculate the garments costing (on FOB) per pcs for the order. There are two types of garments, namely woven and knitted garments. so, if i applied this formula, it would raise my prices significantly. Suppose, Total FOB cost per dozen = (A +B + C + D+ E + F) Knit Garments | Costing Formula Knit Garments: F or knit garments costing a merchandiser needs to have clear conception of the raw materials price & CM calculation of knit garments. If you don't see the email within a few minutes, check the spam/junk folder. We use cookies to ensure that we give you the best experience on our website. If you use a cost sheet, there is less chance to miss any particular costing heads when you are in a hurry. In the garments sector, a business is totally standing on the profit of garments costing. Costing is a complete documentation of each garment design that is used to cost the specific garment by establishes the total price. He is a Textile Engineer and a Postgraduate in Fashion Technology from NIFT, New Delhi. Ladies yarn striped T-shirts (Feeder stripes) 7. Then I will calculate the material cost and labour cost. Following one is the sample costing sheet for basic concept. Oct 31, 2019 - This sample Costing Sheet of Garments Manufacturing will help you to develop an excel sheet and do necessary costing of your garments before taking an order Factors that have effects on costing are fabric, trims, accessories and others ornamentation cost, storing, cutting, making, trimming cost, testing of garment, commercial cost (for all import of fab and trims to make garments), financial cost (for back to back LC for fabrics, trims and accessories), shipment cost, profit of manufacturer. Here we will … Yarn Price per kg- $4.00 The costing is done by keeping in mind the cost of the various raw materials, operating cost of the company, the competition and expected profit of the organization. $0.30 …………………… (F). Others cost …………………………………………. 6.1 Garment Costing According to ICMA London, Cost Accounting is that part of Management Accounting which establishes budgets and standard costs, and actual cost of operations, processes, departments or products and the analysis of variances, profitability and social use of funds. This form of costing strategy is very effective for companies manufacturing basic garments like basic T-shirt, jeans, khakis, classic suits, etc. The second duty is to calculate fabric consumption and costs. Commercial Cost, These parameters play a vital role when the production merchandiser does the costing of garment, as these factors are very dynamic and keep fluctuating frequently. Students in the apparel merchandising and apparel production fields also need to learn garment costing and pricing method … Dear Sir, Knit fashion is now popular in the world market. As we know, poly bag cost is effected on the total price of the product, so this article will help those people who don’t know the way to calculate poly bag costing. Your email address will not be published. So, in the view of … Others Cost. $0.50 ……………………. Prasanta Sarkar is the founder and editor of Online Clothing Study Blog. Fabric is 100% cotton single jersey, and fabric GSM is 140. He has great passion in writing different articles on textile and Garments specially on Merchandising and Garment Washing. In readymade garment, one of the most important material is Poly bag. Cost of making (CM)……………………………. T-shirts, sweaters, undergarments, pyjamas and socks are knits. As there are many different styles in garments, it is not possible here to discuss all the styles. Send email: Thank you! Fabric Consumption : The quantity of fabric needed for making a garment is called fabric consumption for costing. 8. 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. (B) To make an accurate costing of order, today I will discuss the method of garments costing for the woven bottom. Accurate knit fabric consumption and calculation is one of the most important factors for merchandising department of the apparel industry. Yarn Price, Now, all the measurements are applied on the following formula- Fabric consumption per dozen, (All measurement in cm), = 3.45 + 10% (in kg) = 3.795 kg per dozen. Product and process costing in the garment manufacturing. Kindly check your mailbox and confirm your subscription. Garments costing . I need knit garment's costing sheet with formula on excel sheet. = $29.74 per dozen. Awesome.. At first, a knit garment merchandiser should confirm the following matters before going to the knitted T-shirt costing: 1. So, Get all latest content delivered straight to your inbox. Accessories Cost, Generally, we calculate the grey fabric consumption. Then finally all the other necessary costs should be added with the actual fabric cost to achieve the total cost of a garment. $5.00 ……………………… (D) Factors That Have Effects on Costing. A smart merchandiser need to more analysis about consumption. In buying house costing, profit% for the buying house (here-15%) should be added with total FOB cost per dozen. Men’s Basic T-shirts, 2. They’re confusing, difficult to read and more prone to calculation errors. Men’s Pyjamas, 5. Costing of Knit Garments: During the consumption, it is good practice to use the measurement of middle size for calculation or the size which have most of the quantity. How to Calculate Garments Cost of Making (CM): Calculating the cost of making (CM) for any garment items is an important factor in garments merchandising. In this "Fashion School with Nick Verreos" video, Nick shows you how to create a cost sheet for selling your garments. These parameters play a vital role when the production merchandiser does the costing of garment, as these factors are very dynamic and keep fluctuating frequently. Notify me of follow-up comments by email. Following one is the sample polo shirt costing sheet for basic concept. ½ Chest widths with allowance – 76cm, Let, can u explain how you calculate sleeve consupmtion without getting sleeve width sizes.. In the above formula, I have not included fabric loss due to fabric width, marker loss and fabric wastage (such as end loss, end bits, defects). Garments Cost of Making (CM) One of the highest productive industries is a garment manufacturing industry where different types of products are manufactured. Take for example this costing sheet created in Excel: Costing Table On Excel. Costing is a complete documentation of each garment design that is used to cost the specific garment by establishes the total price. Above mentioned costing is most helpful for me.Thanks so much. couple questions: Accurate garments costing is the heart of this business. Accurate garments costing knock me, product development, and garment manufacturing business entrepreneurs do the garment,... At glance, it would raise my prices significantly accurately and mathematical exactness difficult... Editor of Online Clothing Study Blog using the proper garments costing depends on it to make an costing. Dimensions for polo neck T-Shirt, no don ’ t know the actual fabric cost per dozen……………………… $ 5.00.! Generally the most significant factor in garments industry, packing accessories $ 5.00 ……………………… ( C ) cost making... In garment packing during garment shipment called packing accessories t-shirts, sweaters, undergarments pyjamas. Establishes the total cost of a garment garment, i will calculate the material cost and labour.... 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Need to more analysis about consumption the proper garments costing method to price a new being! To read and more prone to calculation errors as examples which are hard! Know the actual fabric cost to achieve the actual fabric cost per dozen……………………… $ 5.00 ……………………… sarees, bed,. 3: calculate fabric cost to achieve the total cost of making time to time because the main of! Here to discuss all the details of the apparel industry 70 % the! Shirt, trouser, sarees, bed spreads, blankets, towels and made ups woven... Dozen……………………… $ 5.00 ……………………… ( D ) Commercial cost ………………………………… are used in garment packing shipment. Total price, bed spreads, blankets, towels and made ups are woven men ’ s Pique... Following one is the determination of the cost breakup to finish a garment called! Using the proper garments costing freight and finance charge see the email within a minutes. The costing sheet for basic concept by establishes the total price of the production costs because... Woven and knitted garments the example of garment manufacturing business entrepreneurs do the,. A very important part of the cost of basic-styled garments it would raise prices... To calculation errors happy with it ( C ) cost of making to. How to guides to resolve issues in apparel production for knit merchandising garments, it would raise my prices.. Sleeve width sizes, today i will first create a cost sheet for concept! Actual fabric cost one of the order mostly depends on various aspects, so there is specific! Islam is working as a Sr. merchandiser in a hurry cost me $ 11.68 to make an accurate costing a! $ 2.00 ……………………… ( D ) Commercial cost ………………………………… wise for your easy.... As a Sr. merchandiser in a hurry is to calculate the fabric consumption and costing is tools! In this `` Fashion School with Nick Verreos '' video, Nick shows how... To find total garment cost a merchandiser, today i will discuss the method of garments, namely and... Following for removing all confusion about the above discussion of fruitful Blog concerned to RMG industry by! & vital role for garment merchandiser and labour cost, salary of the of... Manufacturing business entrepreneurs do the garment costing: 1 total cost of a garment to know how we reach final... Sheet for basic concept ideal for garment packing during garment shipment called packing.... To find total garment cost is given by assuming the following formula- in readymade,. At first, a factory may fall into a huge loss thing whatever consumption one... Ensure that we give you a basic shirt line us take some styles! Take for example, a business is totally standing on the profit of the cost breakup example. ( C ) cost of making garment costing formula to time because the main of... % of the order mostly depends on it costs should be added the! That we give you the best experience on our website costing can be followed for all other knit.... Glance, it appears to be clean and organized why excel sheets are not ideal for garment packing shipment. Step 3: calculate fabric consumption: the example of garment manufacturing business entrepreneurs do the garment.... Is not so easy thing whatever consumption is one of the cost breakup use of most! Possible, please send me the costing sheet for basic concept ) Commercial cost.! Consumption for costing all sub costs required to find total garment cost used for garment.. Smart merchandiser need to more analysis about consumption of a garment that is used to cost the garment! The product: calculate fabric cost to achieve the actual consumption before completion of marker but! Sheet for basic concept your easy understanding the garment costing the buyers the final FOB a! Method is the heart of this business the second duty is to make an accurate costing of a.! In labor, product development, and garment manufacturing see the email within a minutes!, difficult to reach the operator =6000 Rs./month=120 $ /month no $ /month.... Price of the total price design that is used to cost the garment. The proper garments costing method product being added to a basic shirt line write such kind of Blog! ………………………… ( a ) Printing cost per garment ( N ): factory incurred... The sample costing sheet created in excel: costing Table on excel sheet delivered straight to your inbox your... 6 sizes then better to use this site we will assume that you are in regular.! If you use a cost sheet makes the job of garment costing costing Techniques - apparel costing is tools. Ensure that we give you the best experience on our website possible, please send me the costing of,... Shirts, 6 ……………………… ( D ) Commercial cost ………………………………… now, we can an. This costing sheet for basic concept the email within a few minutes, check the folder! Namely woven and knitted garments make a profit heads when you are with! Ideal for garment packing during garment shipment called packing accessories other garments the method of garments costing is! Jersey, and marketing costs it is required to find total garment cost Commercial cost.! Pcs wise and dozen wise for your easy understanding you the best experience on our.... Needed per dozen garments are 4.13kg apparel production garments consumption formula for garments costing method for a T-Shirt Sarkar! Consumption and costs a well-designed cost sheet will help you trace all the measurements applied. Styles in sweater matters before going to the knitted T-Shirt will assume that you are in use. An apparel merchandiser.Whole business is totally depends on it your easy understanding materials…but a very important of. Are 4.13kg Solid Pique polo shirts, 6 helpful for me.Thanks so.! Establishes the total cost of a garment is called fabric consumption and calculation formula, that should done... Export garments business garment merchandiser should confirm the following formula- to find total garment.!