How to calculate costing for Woven Jacket.

Garment costing is the very essential part of a garment industry. Without effective garment costing a factory cannot make money of  the right way. A merchandiser should calculate the effective garment costing on the right way. During costing if any items missing then it will loss the money from the profit. So,you must be careful & consider every item during costing stage. I will explain a woven jacket costing example for easy understanding so anyone can understand the costing process without hesitation.

Before costing we have to must know & consider the below things.

1. Fabric details (Like as composition, construction, Shrinkage, CW, Price)
2. Consumption per garments.
3. Fabric price (LC terms & C & F price or local terms)
4. Trim Fabric price.
5. Trims price.
6. Wash price.
7. Print price (If requirement)
8. Embroidery (If requirement)
9. CM (Cute & Make)
10. Commercial charge.
11. Profit %
12. FOB
13. Shipment mode (Sea or Air)

Example

Here Given

1. Fabric details.

100% cotton 3/1 10+7*12/70*48

Shrinkage 3X3

Fabric price$ 1.97(LC 120 days & CNF CTG)

Consumption per garments 1.97 yds

Total cost=1.97 ydsX$1.97=$3.88

2. Pocketing Fabric(white TC)

Price (Local Source,90 days LC)=$0.65

Per garment consumption=0.11 yds

Total cost=0.11 ydsX$0.65=$.07

3. Trims cost

All trims cost consider=$1.23

4. Trims cost

Wash cost depend on garment dry & wet process on garments body.

In this jacket dry process critical & it has 30 destroy. Every destroy consider approx. $0 .02/pc

Wet process: PP + Softener

Total I had consider $ 1.50/pc

5. CM( Cost of Making)

Cost per machine X Required machine

Output of jacket per day

(Per hour output 70 pcs X 10 hour per day)

$25X70

700

=$2.50

6. Commercial charge

I had considered commercial charge 8% for fabric & trims.

Total commercial charge $0.41

7. Buying or Agent commission

I had considered buying commission 12%. If need you can consider this costing.

Total buying commission =$1.15

8. FOB (Free on Board)

Here I had considered sea shipment.

Total FOB per garments=$3.88+$0.07+$1.23+$1.50+$2.50+$0.41+$1.15

Total FOB =$10.74

Total FOB per Dozen=$10.74X12=$128.9

Md.Mahbub-Ul Islam

RMG Consultant & Researcher.

mahbub.islam54@gmail.com