# How to Calculate Garments Cost of Making (CM)

### How to Calculate Garments Cost of Making (CM):

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

#### How to Calculate Cost of Making (CM) of Garments?

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 costs 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 costs of making (CM) per dozen basic T-Shirt is \$3.08

Speech from the writer:

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#### Mayedul Islam

Mayedul Islam is working as a Sr. Merchandiser in a reputed Buying House. He has great passion in writing different articles on textile and Garments specially on Merchandising and Garment Washing. Send email:mayedul.islam66@gmail.com

#### Latest posts by Mayedul Islam (see all)

• Abu bakar siddique

Nice working

• Mayedul Islam

Thanks..

• Shebeer Ali

Very useful.

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.

• Md Motiur Rahman

Dear sir,
Bulding cost include in CM?

• Mayedul Islam

Yes.

• Markko Sotisaari

Thanks a lot these posting..

Good work!!!

• 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)?

how to calculate a number of machine to be used in a garment for cm costing purposes?

• Md. Rasel Ahamed

Many Many Thanks Sir

• Mayedul Islam

Wc. Stay with us for more.

• Md. Ponir

Dear SIR,

I understand CM calculating but my question is factory cost only included CM calculation why don’t
included other costs such Head Office cost ,finance cost . Other cost Ignore why?

• d.ajith priyanka

very important post for all person garment industry. thanks.

• Mayedul Islam

Thanks.

• PK

Should the price of the thread for each garment be included in the cm price?

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