How to Calculate Garments Cost of Making (CM)

By | September 1, 2015

How to Calculate Garments Cost of Making (CM)

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

 

Introduction:

Calculating cost of making (CM) for any garment items is an important factor in garments merchandising. Every garments merchandiser should know the actual calculating method of it. Other-wise, factory may fall in huge loss. As its importance in garments merchandising, today I will present an easy method for calculating cost of making (CM) for any garment items.

Garments making

Garments making

How to Calculate Cost of Making (CM) of Garmnets?

Before calculating cost of making (CM) for any garment items, a garment merchandiser should confirm the following matters:

  1. Factory total expenditure per month (running), it includes factory rent, electricity bill, water bill, commercial cost, transportation, worker & staff wages etc.
  2. Total number of machines in the factory.
  3. Total number of machines required to complete an item.
  4. Targeted production per hour from the existing layout (excluding alter and reject).
  5. Total working day per month.
  6. Total working hours per day.

Now by applying following formula, a garment merchandiser can easily calculate the actual cost of garments making.

Cost of making (CM) per pcs,
Now one example is enough to remove all the confusions from the above discussion.

Example:

Suppose,
H.N apparels has received an order of basic T-Shirt item.

Where,
H.N apparels total expenditure per month-30,00,000 taka
Total number of machines in the factory-100
Total number of machines required to complete an item-25
Targeted production per hour from the existing layout-180
Total working day per month-26
Total working hours per day-08

Now calculate the cost of making(CM) of the mentioned item.

Solution:

Cost of making (CM) per pcs,


= 20.03 taka per pcs
= (20.03 × 12) taka per dozen
= 240.38 taka per dozen
= 240.38/78 (in dollar) {1dollar-78taka (running)}
= $3.08 per dozen

So, the cost of making (CM) per dozen basic T-Shirt is $3.08

Speech from the writer:
This article is only for showing the calculating method only. All the numbers are used here just for completing the calculation.

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8 thoughts on “How to Calculate Garments Cost of Making (CM)

  1. KAZI MOHAMMAD ALAMGIR

    MANY THANKS FOR THIS VERY USEFUL ARTICLE. I DID A SHORT MERCHANDIZING COURSE IN BANGLADESH BUT DUE TO LACK OF OPPORTUNITY AND PRACTICE I FORGOT MANY THINGS. IT WOULD BE DEEPLY APPRECIATED IF YOU COULD KINDLY SUGGEST ME AS HOW CAN I GET ALL THESE GARMENTS RELATED INFORMATION(MERCHANDIZING) OR LESSON. PRESENTLY I AM IN ITALY AND WOULD LIKE TO START A GARMENTS BUSINESS . THANKS AND REGARDS.

    Reply
  2. Md Motiur Rahman

    Dear sir,
    Bulding cost include in CM?
    please information me.

    Reply
  3. md sazol hossain

    sir,
    I’m sample qc, bt I want to know more things, this site is awesome,, I like it very much,. now I have a question here, how to cost a garment (sus a l/s shirt)?

    Reply

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