How to Calculate Garments Cost of Making (CM)

How to Calculate Garments Cost of Making (CM):

Calculating the 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. Otherwise, a factory may fall into a huge loss. As its importance in garments merchandising, today I will present an easy method for calculating the cost of making (CM) for any garment items.

Garments making

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

Before calculating the cost of making (CM) for any clothing 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. A total number of machines in the factory.
3. A 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 the 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 confusion from the above discussion.

Example:

Suppose,
H.N apparels have 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:

• 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?

• sanju

I have a question at this moment . , what is the factory total expenditure ? Example our factory total monthly cost 4 crore. now what can i find out the real factory expenditure .?
.

• Jackson alli

stupid Asian garment working style investing in poor countries and working their ass of with little payment, never seen a crruel way of making money it’s slavery specially sri lankas they are eveil

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