Method of Garments Costing for Polo Shirt

By | October 30, 2015

Method of Garments Costing for Knitted Polo Shirt (Buying Costing)

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

 

Introduction:

A garments merchandiser is too much efficient who can make perfect costing of any garments. Costing is an important part of garments merchandising. Order profit is totally depends on it. As its importance on garments merchandising, today I will present an easy method of garments costing for knitted polo shirt.

Method of Garments Costing for Knitted Polo Shirt:

At the starting of garments costing for knitted polo shirt, a knit garments merchandiser should be known about the following matters:

  1. Yarn Price ,
  2. Knitting and Washing Cost,
  3. Dyeing Cost,
  4. Printing cost,
  5. Embroidery Cost,
  6. Cost of Making (CM),
  7. Accessories Cost,
  8. Commercial Cost,
  9. Others Cost.

Important tips***

  • The second duty is to calculate the fabric consumption and costing.
  • Normally, we calculate the grey fabric consumption.
  • The third duty of a knit merchandiser is, all the required fabrics processing cost (knitting+ washing cost, dyeing cost) should be added with grey fabric cost. After that, we can achieve the actual fabric cost.
  • At last stage, all the others necessary cost should be added with actual fabric cost to achieve total cost of a garment.

Now, I will present an example in the below about the above discussion to remove your confusion. Hope it will be effective for you.

Example:

Suppose,

The buyer “CK” forwards a knitted polo shirt item order (20000pcs) to you with the following specification.

  1. 100% cotton single jersey fabric for body parts (Body + Sleeve), Half-moon and Pocket. Where fabric GSM is 180.
  2. 1 × 1 Rib fabric for collar and Cuff. Where the fabric GSM is 225.
  3. Print on front part.
  4. Embroidery on sleeve,

Follow the below measurement sheet.

Actual
length
Allowance
Measurement
with Allowance
Body length
67cm
6cm
73cm
Sleeve length
19cm
6cm
25cm
½ Chest width
53cm
6cm
59cm
Collar length
38cm
0cm
38cm
Collar width
6cm
3cm
9cm
Cuff length
21cm
4cm
25cm
Cuff width
3cm
2cm
5cm
Pocket length
12cm
3cm
15cm
Pocket width
9cm
3cm
12cm
Half-moon length
13cm
3cm
16cm
Half-moon width
8cm
3cm
11cm

Now, calculate the garments costing (On FOB) for the above order.

Solution:

Fabric GSM- 180 for cotton single jersey,
Fabric GSM- 225 for 1 × 1 Rib fabric.

Let,

Yarn Price per kg- $4.00
Knitting and Washing Cost per kg- $1.40
Dyeing Cost per kg- $2.00
Printing Cost per dozen- $3.50
Embroidery Cost per dozen- $5.50
Accessories Cost per dozen- $1.95

Now, we have to determine the fabric consumption for the above order.

Fabric Consumption:

1. Fabric consumption for Body parts (Body +Sleeve):    

Here, we will follow the following formula (per dozen),

= 2.50kg per dozen.

So, fabric consumption for Body parts (Body +Sleeve) is 2.50kg per dozen.

2. Fabric consumption for Collar:

Here, we will follow the following formula (per dozen),

= 0.10kg per dozen.

So, fabric consumption for Collar is 0.10kg per dozen.

3. Fabric consumption for Cuff:

Here, we will follow the following formula (per dozen),

= 0.07kg per dozen.

So, fabric consumption for Cuff is 0.07kg per dozen.

4. Fabric consumption for Pocket:

Here, we will follow the following formula (per dozen),

= 0.04kg per dozen.

So, fabric consumption for Pocket is 0.04kg per dozen.

5. Fabric consumption for Half- moon:

Here, we will follow the following formula (per dozen),

= 0.04kg per dozen.

So, fabric consumption for Half- moon is 0.04kg per dozen.

 Now, total amount of cotton single jersey fabric needed for this order is (per dozen),
= [{Fabric consumption for Body parts (Body +Sleeve) + Fabric consumption for Pocket + Fabric consumption for Half- moon} + wastage (10%)]

= {(2.50 + 0.04 + 0.04) kg + 10%}
= 2.58kg + 10%
= 2.84kg per dozen.

So, cotton single jersey Grey fabrics needed per dozen 2.84kg.

And,

Total amount of (1 × 1) Rib fabric needed for this order is (per dozen),
= {(Fabric consumption for Collar + Fabric consumption for Cuff) + wastage (10%)}
= {(0.10 + 0.07) kg + 10%}
= (0.17kg + 10%)
= 0.19kg per dozen.

So, 1 × 1 Rib Grey fabrics needed per dozen 0.19kg.

Total grey fabric needed to make the polo shirt is – (2.84+ 0.19 = 3.03kg) per dozen

As yarn price per kg is $4.00 then, total grey fabrics cost per dozen is (3.03kg × $4.00) = $12.12

Total grey fabrics cost per dozen is $12.12

Now, adding all the fabric processing cost (Knitting+ Washing Cost, Dyeing Cost) with grey fabrics cost, actual fabric cost will be achieved.

So,

Actual fabric cost,
= Total Grey fabric cost + [{(knitting cost + washing cost) + dyeing cost} × Total grey fabric] per dozen
= [$12.12 + {($1.40 + $2.00) × 3.03}] per dozen
= $22.42 per dozen.

So, actual fabric cost per dozen is……..…. $22.42 ………………… (A)
Printing Cost per dozen……………………… $3.50 ………………….. (B)
Embroidery cost per dozen ………………… $5.50 ……..…….…….. (C)
Accessories Cost per dozen………………..…$ 1.95 ….……………… (D)
Cost of making (CM)……………………….…. $7.00 ……………..…… (E)
Commercial cost ……………………………….. $0.50 …………..…..…. (F)
Others cost ………………………………………. $0.20 ………………..… (G)

Here,

By adding A, B, C, D, E, F and G, we will achieve the total FOB cost of garments per dozen for the above order.

Total FOB cost per dozen = (A +B + C + D+ E + F + G)
= $ (22.42 + 3.50 + 5.50 + 1.95 + 7.00 + 0.50 + 0.20)
= $41.07 per dozen.

So, total FOB cost per dozen is $41.07

In buying house costing, profit% for the buying house (here-20%) should be added with total FOB cost per dozen.

So, in this situation, total FOB cost per dozen with profit% stands at-
=$41.07 + 20% commission
= $49.28 per dozen.

Now, total FOB cost per pcs is ($49.28 / 12) = $4.11

So, Buying House costing (FOB) per pcs garment of the above order is $4.11

Speech from the writer:
The main object of this article is to show the calculating method only. So, don’t be disappointed about its result. Here, all the numbers are used for completing the calculation only. So, don’t make any comment about the calculating result please. You can deliver your comment, advice just about the calculating method only if therer’s any problem.

Besides,

If you read this article with full attention, then you can easily answer the following questions in the interview:

  1. How to calculate garments costing for polo shirt?
  2. How to calculate garments costing for polo shirt in case of buying hose?
  3. Show a costing calculation method for polo shirt.
  4. Show a costing calculation method for polo shirt in case of buying hose.
  5. Mention a price break down for polo shirt.

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2 thoughts on “Method of Garments Costing for Polo Shirt

  1. Seema

    It’s really helpful fr me to learn through this site
    Really worth it
    Cn I get the parts of variable cost , direct n indirect cost etc

    Reply

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