# How to Calculate Sweater Costing in Buying House

### How to Calculate Sweater Costing in Buying House?

Costing is an important fact in the garments manufacturing sector. The whole business totally depends on it. Accurate costing can increase the growth of a business. As its importance in garments merchandising, today I will present the sweater costing calculation method in this article.

Sweater Costing

#### Costing Calculation Method of Sweater Costing (Buying Costing):

Before starting sweater costing, a sweater garments merchandiser should confirm the following items:

1. Yarn Cost per lbs,
2. Embroidery Cost per dozen,
3. Printing Cost per dozen,
4. Accessories Cost (Zipper, button, etc.),
5. Washing Cost per dozen,
6. Cost of Making (CM) per dozen,
7. Commercial Cost per dozen,
8. Others Cost per dozen.

The very next duty of a sweater garments merchandiser is to determine the yarn consumption and costs.

Yarn cost can be calculated by using the below formula:
[{(Garments weight in lbs per dozen) + wastage %} × Yarn price per lbs]

Generally, we have added 10-20% wastage depends on styling.

In this stage, all the other necessary costs should be added to the total yarn cost to achieve the total cost of a garment.

Now, one example is presented below to clear all the confusion about the above discussion.

#### Example:

Suppose,
The buyer “CK” forwards a sweater order to you by mentioning the following terms:

• Yarn: 100% Acrylic, 2/36”S
• Weight: 195gm (2ply)
• Knitting: 12 GG plain knit in body, (2×2) Rib at bottom and sleeve opening,
• Specifications: Plain knit placket, 2 pockets.

Now, find out the garments costing of the above order.

#### Solution:

Let,

• Yarn Cost per lbs- \$5.00
• Embroidery Cost per dozen- \$1.50
• Printing Cost per dozen-\$1.50
• Cost of Making (CM) per dozen- \$25.00
• Washing Cost per dozen- \$4.00
• Accessories Cost (Zipper, button, etc.)- \$4.00

Now,
Yarn costing per dozen garments:
As garments weight is 195gm for 1pc then for 1dozen garments, yarn needed (195 × 12)

= 2340gm

= 5.16lbs    (1lb = 453.6gm)

After adding 10% wastage, the total yarn needed- 5.68lbs

So, yarn cost per dozen stands at- \$(5.00 × 5.68) = \$28.38

By adding all the following costs with the total yarn cost, we will get the total FOB cost of garments per dozen.

• Yarn cost per dozen …………………………… \$28.38 ……………………. (A)
• Printing Cost per dozen ………………………..\$1.50 …………………… (B)
• Embroidery Cost per dozen ……………… \$1.50 ……………………. (C)
• Accessories Cost per dozen …………………..\$4.00 …………………… (D)
• Washing cost per dozen ……………………… \$4.00……………………… (E)
• Cost of making (CM)……………………..….\$25.00 ………………….. (F)
• Commercial cost …………………………….…. \$1.00 ………………. (G)
• Others cost …………………………………………\$0.50 …………….. (H)

So,
Total FOB cost per dozen = (A + B + C + D + E+ F + G + H)
= \$ (28.38+ 1.50+ 1.50+ 4.00+ 4.00+ 25.00+ 1.00+ 0.50)
= \$65.88 per dozen.

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

So,
Total FOB cost per dozen with profit% stands at (\$65.88 + 20%) = \$79.10

Now, total FOB cost per pcs is (\$79.10 / 12) = \$6.56

So, in the view of buying house costing (FOB) per pcs clothing is \$6.56

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