Garments Costing Method for Knitted TShirt (Buying Costing)
Garments Costing Method for Knitted TShirt (Buying Costing):
In the garments sector, a business is totally standing 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 TShirt. As its importance on garments profit, today I will discuss the easiest costing method for a knitted TShirt.
Method of Garments Costing for the knitted TShirt:
At first, a knit garment merchandiser should confirm the following matters before going to the knitted Tshirt 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 costs.
 Generally, we calculate the grey fabric consumption.
 After completing grey fabric consumption and costing, all the required fabric processing costs (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 other necessary costs should be added with the actual fabric cost to achieve the total cost of a garment.
An example of knitted TShirt 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 TShirt order by mentioning the order quantity and fabric GSM.
 Fabric is 100% cotton single jersey, and fabric GSM is 140
 The 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),
= 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 costs (Knitting+ Washing Cost, Dyeing Cost) with grey fabrics cost, the 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, the 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, the total FOB cost per dozen stands at$42.54
In buying house costing, profit% for the buying house (here15%) 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 clothing is ($48.92 / 12) = $4.08
So, in the view of buying house costing (FOB) per pcs garment is $4.08
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
Above mentioned costing is most helpful for me.Thanks so much.
U r most wc.
Please give here yarn count .
Thank you very much nahid bhai to write such kind of fruitful blog concerned to RMG industry. I am learning a lot of things here.. Awesome.. Awesome!
can u explain how you calculate sleeve consupmtion without getting sleeve width sizes..
This is really very easy to understand and helpful, thanks a lot!
Welcome