Garments Costing Method for Knitted T-Shirt (Buying Costing)

By | August 12, 2015

Garments Costing Method for Knitted T-Shirt (Buying Costing)

Mayedul Islam
Merchandiser at Fashion Xpress Buying House.
Badda, Dhaka, Bangladesh.
Email: [email protected]

 

Introduction:

In garments sector, a business is totally stands 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 about the easiest costing method for a knitted T-Shirt.

Buying cost of knitted t-shirt

Buying cost of knitted t-shirt

Method of Garments Costing for 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 costing.

  • Generally, we calculate the grey fabric consumption.
  • After completing grey fabric consumption and costing, all the required fabric processing cost (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 others necessary cost should be added with actual fabric cost to achieve total cost of a garment.

An example for 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. Order quantity is 15000pc.

Then calculate the garments costing (on FOB) per pcs for the order.

Actual
Allowance
Measurement 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),Fabric Consumption
= 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 cost (Knitting+ Washing Cost, Dyeing Cost) with grey fabrics cost, 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, 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, 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 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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3 thoughts on “Garments Costing Method for Knitted T-Shirt (Buying Costing)

  1. Sharif

    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…………………

    Thanks
    Sharif

    Reply

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