LYCRA KNITTED SINGLE JERSEY PANT COSTING

On the previous occasion the Cost sheet was prepared considering the values a bit relaxed to give
a proper idea on how to do costing only, but in case of surviving in the cut throat market of modern
Garments industry one needs to be make more precise cost sheets to grab orders & also along with
the costing details will provide the necessary information to proceed with good accuracy.

Now lets see through tight costing procedure how the final results come out & also the mostly
asked question while facing any interview to prepare cost sheet of Lycra Single Jersey. Lets view
a Tech Pack for which we will proceed to costing in the later part.

So before going forward to Costing the Tech Pack should be carefully analyzed for below issues.
1. Fabric Consumption:
For proceeding to Calculating the Consumption of the Lace Trim Legging need to consider
the Middle values. So for this style the values that are needed for estimating the Fabric
Consumption is as below:

Parts of Body Considered for Costing Actuallength Allowance

Out leg length- Incl waistband 51cm (as grown on waistband 4cm
3cm added for folded fabric)
Across Thigh 15.5cm 3cm

So from the above measurements lets find out the fabric consumption:

Firstly, the Fabric Consumed by Body Parts (Excluding Lace Trim) for 12pcs/Doz is as
below:

(Out leg length+Allowance)(Across Thigh+Allowance)4GSM12

= 10000000
(51+4)(15.5+3)418012
=
10000000
= 0.8791 kg per dozen.

So, fabric consumption for Body Parts (Excluding Lace Trim) is 0.8791 kg per dozen
After adding the Garments Process loss of 15% (Solid Dyed Gmts of Cotton/Elastane
consumes more Fabric than 100% Cotton Solid Dyed) the Fabric consumption for Body
Parts (Excluding Lace Trim) is 1.011 kg per dozen.

2. Yarn Price:
As this is a 180GSM 95/5% Lycra Single Jersey Fabric. So for getting the Yarn Count
required for this Fabric will be as below:
6100
Single Jersey Yarn Count = Fabric GSM
6100
= 180
=34s.

So considering the Yarn count is 34s, the approx. price for this type of Yarn is- $ 3.25
which is $ 0.25 higher of 30s yarn in the market (if one is capable of sourcing 30s count
yarns at $ 3.00). However, in case of using Comb Yarn the price will be $ 0.30 higher to
that of Card Yarn & in this case $ 3.55.

Also in case of Full Feeder Lycra as given style the Lycra Yarn required to develop such
fabric will be 20D (Denier) which is mostly used in Bangladesh & are available.
 For Purchasing Yarn, the fact which needs to be considered is that from Yarn to Lycra
Single Jersey Fabric Making there will be a process loss of 15% in between for Solid
Garments.

Thus the Total Cotton Yarn Price

=(Total Fabric Reqd Process Loss Yarn Price 95%)
=(1.011 (1 + 15%) 3.25 95%)
= $ 3.5897
And the Total Lycra Yarn Price considering the market price for that is $ 8.0 per Kgs
=(Total Fabric Reqd Process Loss Yarn Price 95%)
=(1.011 (1 + 15%) 8 5%)
= $ 0.465
However, the Yarn Price may vary from time to time and Factory to Factory. So the
mentioned price may change with different factory & the capability of sourcing of
individuals or organizations. But for purchasing Yarn this is certain that when the No. of
Yarn Count increases the Yarn becomes finer & thus the price of the Yarn increases.
Normally the increase or decrease in price ranges from $0.05 to $ 0.10. but in case of
Cotton Mlange, Slub, Blended, Fiber Dyed & Fiber Composition changes the price will
be totally different from 100% Cotton Yarns.

3. Knitting Cost:
This Style contain Lycra Single Jersey Fabric for which the Knitting price is at least Tk-
11~Tk-12 ($ 0.147~$ 0.16) more than Solid Single Jersey Knitting Price.
If one can source a Knitting Factory Which Knits Single Jersey at Tk-18 than the Lycra
Single Jersey will cost Tk-29 ($0.387). So for Greige Single Jersey the Knitting price is
Approx- $ 0.387/Kg which is quiet tight.

For Knitting, we will try to ensure the entire Yarn is properly utilized & accurate Fabric is
prepared.Thus the Total Knitting Price will be

=(Total Fabric Reqd Process Loss Knitting Price)

=(1.011 (1 + 15%) 0.387)

= $ 0.45

However, the Knitting price will differ for Feeder Stripe, Engineering Stripe or Other type
of Knitted Fabrics such as Single Jersey, Rib, Interlock, Fleece, Lacoste, Pique etc. Also
the given is an estimated value closer to actual but will vary for factory to factory.
4. Dyeing Cost:
For Dyeing cost we will calculate the same considering it is an Average colour as the Tech
File mentions 4 option plain dye.
So by sourcing the Dyeing offering the cheapest Dyeing price of Tk-120/Kgs, the Dyeing
price is $ 1.6/Kg (this is the cost considered for Solid Dyeing) then the total Dyeing price
including process loss will be

= (Total Fabric Reqd Process Loss Dyeing Price)

=(1.011 (1 + 15%) 1.6)

= $ 1.8603.

However, the Dyeing price will vary for Yarn Dyeing, Fiber Dyeing (Space Dyed).
Accordingly, the Processes involved for fabric making & the process loss will also differ
for Solid Dyeing method & other forms of Dyeing method.

5. Heat Setting Cost:

For Lycra Single Jersey it is a must to Heat Set the fabric as without Heat Setting the Fabric
it will cause crease marks & other problems which ultimately cause quality problem,
wastage.
So by sourcing the Dyeing offering the cheapest Heat Set price of Tk-20/Kgs, the Heat
Setting price is $ 0.2667/Kg then the total Heat Setting price including process loss will be

= (Total Fabric Reqd Process Loss Heat Setting Price)

=(1.011 (1 + 15%) 0.2667)

= $ 0.3101.

Finally, as the price is very tight while proceeding to quoting the price please make sure
you at least consider 5% profit on the Fabric otherwise it will be very difficult to squeeze
any profit from the order.
So the Total price for Fabric is = $ 3.5897 + $ 0.465 + $ 0.45 + $ 1.8603 + $ 0.3101
= $ 6.6751.
After including 5% profit on Fabric = $ 6.6751 1.05
= $ 7.009
6. Cost of Making (CM):
Considering it is a Long Pant, the machines required for this type of product is 12~15 to
produce 1200pcs to 1400pcs per day. So for any compliance industry if the per day machine
cost is Tk-2000 or $ 27, then the Cost of Making per Dozen for such item will be

Line Cost per day 12

=
Output per day per Line
Per day Machine Cost No.of Machine per line 12
=
Output per day per Line
27 15 12
=
1200
= $ 4/Doz (Round Up)

CM can also be calculated by SMV (Standard Minute Value) & SAM (Standard Allowed
Minute). Thus if the SMV of 1 Dozen for such item is $ 0.6 & if it takes 5.5 minutes with
90% Efficiency to prepare 1pc Garment, then the CM will be

SAM of the GarmentsMinute cost of Labour

=
Line Effency

5.50.6
=
0.9

= $ 3.667/Doz or $ 4/Doz (Round Up)

However, note that the price will differ be applicable for order qty from 20000pcs to
100000pcs because if the qty is like 1000, 3000, 5000pcs then from machine setup to
reaching full flow of production takes 3 days so for calculating the CM one needs to
consider this time loss. Thus the CM will be more for smaller order qtys.
7. Accessories Cost:
Though the Accessories Cost is just a term, but in actual accessories mean all the sewing
& finishing items required to prepare the Garments.
As per given Tech File an item such as this one consists of below Accessories:

Main & Size Label:

The Main & Size Label is used for indicating the Brand details, Size & Country of
Manufacture for the Garments that is mentioned by printing on Woven Tape or by
weaving pattern creating designs of wording to mention the same. By sourcing the
Main Label at cheapest price suppose the cost of that is $ 0.22/Doz.

Sewing Thread:
The Sewing Thread is used for joining different garment Fabric Cut panels for
preparing the Garments. There are 2types of Sewing Thread, one is Polyester
Thread (Ply yarn) & the other is Filament Thread (Core spun yarn) which are
available in 2000meter & 4000meter Yarn Cones. In this case the Yarn used that is
used is 4000meter Cones.

In this Case, consider the Basic Pant requires 180meters of Thread for preparing
the Garments. Also by sourcing the same at cheapest price of $ 0.55/cone.

Elastic:
The 3cm Elastic will be used inside the Waistband & the consumption per body
will be calculated as below:
(Waistband Relaxed+Allowance)2(1+Wastage)
= Yards
91.44
(34+2)2(1+10%)
= Yards
91.44
=0.87yds/pc.

Considering best possible supply source arrange to collect the Elastics at $ 0.04/yds.

Lace:
The 3cm Lace will be used at the bottom of the trousers & the consumption per
body will be calculated as below:
(Across Leg Opening+Allowance)4(1+Wastage)
= Yards
91.44
(10+4)4(1+30%)
= Yards
91.44
=0.8yds/pc. (Wastage is higher for such items due knotting & cutting wastage)
 Considering best possible supply source arrange to collect the Lace at cheapest
price of $ 0.15/yds.

Care Label:
The Care Label is used for indicating the instructions of taking care of the Garments
that is mentioned by printing on Satin Tape or on Nylon Tape by attached the same
on back side of the Garments. On some occasions the care instructions might also
be printed. Also through best possible supply source by arranging the Care Labels
at cheapest price of $ 0.06/Doz.

Price Tag:
The Price Tag is used for indicating the price of the Garments that is mentioned by
printing on Paper Card & is attached on the Garments by Tag Pin. Also through
best possible supply source by arranging the Price Tags at cheapest price of $
0.07/Doz.

Hang Tag:
The Hang Tag is a Brand Tag Paper Card which also is attached on the Garments
by Tag Pin/ Lock Pin. Also through best possible supply source by arranging the
Hang Tags at cheapest price of $ 0.12/Doz.

Tag Pin:
The Tag pin is the plastic pin for attaching the Hang Tag, Price Tag with the
Garments by Tag Gun. Normally it is found in Boxes of 5000pcs. Also through best
possible supply source by arranging the Tag Pins at cheapest price of $ 3/5000pcs.

Hanger:
In most cases Woven products are shipped by hanger pack or by using poly bags
containing plastic hanger attached with it. For this style we will use Hangers. Also
through best possible supply source by arranging the Hangers at cheapest price of
$ 0.1/pc.
 Single Poly:
As everybody now knows how the supply chain does the poly costing. To be exact
the merchandiser sources polys based on the value of Dozen collected from
suppliers. So considering the best possible supply chain arrange to collect the Single
polys at $ 0.4/doz.

Blister Poly:
As everybody now knows how the supply chain does the poly costing. To be exact
the merchandiser sources polys based on the value of Dozen collected from
suppliers. So considering the best possible supply chain arrange to collect the
Blister polys at $ 0.4/doz. Also consider 10pcs will be packed on one blister.

Carton:
As we all know how the Carton value is costed, so after assuming the Carton value
is $ 1/Doz we will prepare the cost sheet.

Gum Tape:
As we all know how the Carton value is costed, so after assuming the Gum Tape
value is $ 0.2/ Doz we will prepare the cost sheet.
 Per Final
Accessories Sourcing
Unit Price Unit Dozen Wastage Costing Formula Value
Item Unit
Conz
$0.22 1 12 (1 + 5%) 0.22 $0.231
Main Label 1 12 12 5%
(Price/Dz) 12
Sewing $0.55 180 4000 180 12 (1 + 5%) 0.55 $0.312
12 5%
Thread (Price/Cone) meter meter 4000
$0.06 1 12 (1 + 5%) 0.06 $0.063
Care Label 1 12 12 5%
(Price/Dz) 12
$0.04 0.87 12 (1 + 5%) 0.04 $0.438
Elastic 0.87 1 12 5%
(Price/Yds) 1
$0.15 0.8 12 (1 + 5%) 0.15 $1.512
Lace 0.8 1 12 5%
(Price/Yds) 1
$0.08 1 12 (1 + 5%) 0.08 $1.008
Hanger 1 1 12 5%
(Price/pc) 1
$0.07 1 12 (1 + 5%) 0.07 $0.074
Price Tag 1 12 12 5%
(Price/Dz) 12
$0.12 1 12 (1 + 5%) 0.12 $0.126
Hang Tag 1 12 12 5%
(Price/Dz) 12
$3 1 12 (1 + 5%) 3 $0.008
Tag Pin 1 12 12 5%
(Price/5000pc) 5000
$0.4 1 12 (1 + 5%) 0.4 $0.42
Single Poly 1 12 12 5%
(Price/Dz) 12
$0.4 0.1 12 (1 + 5%) 0.4 $0.042
Blister Poly 1 0.1 12 5%
(Price/Dz) 12
$1 1 12 (1 + 5%) 1 $1.05
Carton 1 12 12 5%
(Price/dz.) 12
$0.2 1 12 (1 + 5%) 0.2 $0.21
Gum Tape 1 12 12 5%
(Price/dz.) 12
$5.49
Total Price

8. Courier Cost:
As we all know how to calculate cost for Courier. So consider the courier cost per dozen
is $ 0.5

9. Testing Cost:
As we all know how to calculate cost for Testing. So consider the testing cost per dozen is
$ 0.1
10. Others Cost:
For other costs $0.2 can be estimated for parcel, L/C & other services.

Finally, after summarizing all the costs the Fabric Price is = $ 7.009

The Trims Price is = $ 5.49

Testing Price is = $ 0.1

Courier Cost is = $ 0.5

Other Cost is = $ 0.2

CM is = $ 4

So total cost for making the Garments will be $ 17.299/Doz& after considering 5% Buying
Commission the total value will be $ 18.1639/Doz.

Hence the FOB for 1piece garment will be $ 1.51.

Lastly please note that the prices mentioned will largely vary for factory to factory or country to
country. The intention of preparing this document is to give a total idea where & which costs are
included while preparing a cost sheet.