Costing For calculating the cost of the fabric / product, we should have the knowledge of pre-production & production

of the fabric / product. There are 2 types of costing, 1. Direct Cost a. Direct material cost b. Direct labour cost 2. Indirect cost a. Fixed over heads b. Variable over heads c. Other expenses Direct cost Direct material cost: This includes fabric & other raw materials like threads, button & other trimmings. Direct labour cost: This includes the cost of the labour for production of the products like cutting, sewing, finishing, packing, etc. Indirect cost Fixed over heads: The fixed expenditure required to run the organizations smoothly. They are as follows, Rent of the building Rates payable to local authorities Insurance charges for factory & machinery Depreciation charges for building & machinery Salaries for managerial people Interest on capital Variable over heads: It changes as per the rate of production and product style. Example Energy of all kinds, maintenance, well fair, supervisory expenses, stationery, postage & telephones. Other expenses: These expenses are required in co-ordination with other departments. Example Administration expenses, marketing, distribution, purchasing. Besides the above expenses some more charges for transport material are added but they depend up on the agreement between the buyers & sellers like FOB, C&F, and CIF. Profit: Finally we have added the profit percentage. It is depends up on the organization, product style and order quantity.

Fabric Costing Part - 1 To get the fabric first we should find the weight of the fabric. To find out the fabric weight the following particulars must be needed. 1. Ends per Inch (EPI) 2. Picks per Inch (PPI) 3. Fabric Width in Inch 4. Fabric length in Inch 5. Warp Count (Ne) 6. Weft Count (Ne) 7. Warp Crimp % 8. Weft Crimp % Part 2 Shrinkage and waste percentage should be included in to the weight of the fabric. Part 3 1. Include the yarn price 2. Include the weaving cost 3. Include the processing cost (Bleaching/Dyeing/Printing/Finishing) Part 4 1. Include overhead % 2. Include profit % Formula: Fabric weight = warp weight + weft weight Warp weight (g) = {EPI x Width x Length x (warp crimp+100) x 2.54} / {warp count x 10000 x 840 x 0.9144 x 2.205 x 10 } Weft weight (g) = {PPI x Width x Length x (weft crimp+100) x 2.54} / {weft count x 10000 x 840 x 0.9144 x 2.205 x 10 } Simplified Formula: Warp weight (g / warp length) = {EPI x Width x Length x (warp crimp+100) x 1.4997} / {warp count x 10000} Weft weight (g / weft length) = {PPI x Width x Length x (weft crimp+100) x 1.4997} / {weft count x 10000}

Adding percentages: Net fabric cost = (fabric manufacturing cost x profit %) + fabric manufacturing cost Example 1

With white background, the floral printed bed sheet has poplin fabric and the fabric has the following particulars, EPI 132, PPI 72 , Warp count 40s, Weft count 40s, Warp Crimp 4%, Weft crimp 7%. Find out the GSM of the fabric. Answer: Given Data: Ends per Inch 132 , Picks per Inch 72, Warp count 40s , Weft count 40s, Warp crimp 4%, Weft crimp 7%, Fabric width 1 metre (39.37 Inch), Fabric length 1 metre (39.37 Inch) Formula: Warp weight (g / metre) = {EPI x Width x Length x (warp crimp+100) x 1.4997} / {warp count x 10000} Warp weight = {132 x 39.37 x 39.37 x 104 x 1.4997} / {40 x 10000} Warp weight = 32448354.31 / 400000 Warp weight = 81.121 g / m ------------------------ (1) Weft weight (g / metre) = {PPI x Width x Length x (weft crimp+100) x 1.4997} / {weft count x 10000} Weft weight = {72 x 39.37 x 39.37 x 107 x 1.4997} / {40x10000} Weft weight = 17908181.82 / 400000 Weft weight = 44.770 g / m ------------------------- (2) Therefore Fabric weight (GSM) = warp weight + weft weight Fabric weight (GSM) = 81.121 + 44.770 Fabric weight = 125.891 GSM

Example 2

Find the fabric price / metre for the above mentioned fabric (example 1) with the following particulars. 40s yarn price per kg is Rs.170, weaving cost per metre is Rs. 5, Bleaching cost per metre is Rs. 20, dyeing cost per metre is Rs. 35, Printing cost per metre is Rs. 40. Consider the overall manufacturing waste is 5% and the fabric shrinkage is 6%. Over heads and profit is 10 % each. Answer: As per the example 1 fabric weight is 125.891 gsm i.e 0.126 kg per square metre. Particulars Weight Price Fabric weight 0.126 kg Add shrinkage @ 6% 0.134 kg Add waste @ 5% 0.141 kg Total yarn requirement is 0.141kg Yarn Price @ Rs.170 per kg -----(1) Weaving cost ----------------------(2) Bleaching cost ---------------------(3) Printing cost ------------------------(4) Total material cost (add 1-2-3-4) Add Over head cost @ 10% Add profit @ 10 % Net Fabric Cost per metre 0.141 x 170 = Rs. 23.97 Rs. 5.00 Rs. 20.00 Rs. 40.00 Rs.88.97 Rs. 97.87 Rs. 107.66 Rs.107.66

Note: 1. First we have to add shrinkage %, after that only we have to add waste % 2. Like that first we have to add overhead % , after that only we have to add profit % 3. Given fabric is white background, so we should not consider dyeing cost.

Example -3

The plain coral colour curtain is used as kitchen linen and it has finished with the flame-retardant finish. The fabric particulars and manufacturing cost has given below. Fabric particulars: EPI 90, PPI 65 , Warp count 2/40s, Weft count 40s, Warp Crimp 3%, Weft crimp 8%. Fabric width 58 Inch. Manufacturing cost: 40s yarn price per kg is Rs.170, 2/40s yarn price per kg is Rs.140, weaving cost per metre is Rs. 4, Bleaching cost per metre is Rs. 20, dyeing cost per metre is Rs. 50, special finishing cost per metre is Rs. 30. Consider the overall manufacturing waste is 8% and the fabric shrinkage is 5%. Over heads cost is 10 % and profit is 15 % . Find out the Fabric cost per metre. Answer: Given Data: Ends per Inch 90 , Picks per Inch 65, Warp count 2/40s , Weft count 40s, Warp crimp 3%, Weft crimp 8%, Fabric width 58 Inch , Fabric length 1 metre (39.37 Inch) Formula: Warp weight (g / metre) = {EPI x Width x Length x (warp crimp+100) x 1.4997} / {warp count x 10000} Warp weight = {90 x 58 x 39.37 x 103 x 1.4997} / {20 x 10000} --- 2/40s resultant count is 20s Warp weight = 31745161 / 200000 Warp weight = 158.73 g / m ------------------- (A) Weft weight (g / metre) = {PPI x Width x Length x (weft crimp+100) x 1.4997} / {weft count x 10000} Weft weight = {65 x 58 x 39.37 x 108 x 1.4997} / {40x10000} Weft weight = 24040024.83 / 400000 Weft weight = 60.10 g / m ------------------------- (B) Therefore Fabric weight = warp weight + weft weight Fabric weight = 158.73 + 60.10 Fabric weight = 218.83 g i.e fabric weight is 0.219 kg .

Particulars Fabric weight

Warp Weight 0.159 kg

Weft Weight 0.060 kg

Price

Add shrinkage @ 5% Add waste @ 8% Warp yarn price @ Rs 140 per kg Weft yarn price @ Rs 170 per kg Total Yarn cost --------------------(1) Weaving cost ----------------------(2) Dyeing cost ------------------------(3) Finishing cost----------------------(4) Total material cost (add 1-2-3-4) Add Over head cost @ 10% Add profit @ 15 % Net Fabric Cost per metre

0.167 kg 0.180 kg

0.063 kg 0.068 kg 0.180 x 140 = Rs. 25.20 0.068 x 170 = Rs. 11.56 Rs. 36.76 Rs. 04.00 Rs. 50.00 Rs. 30.00 Rs.120.76 Rs.132.84 Rs.152.77 Rs.152.77

Note: 1. First we have to add shrinkage %, after that only we have to add waste % 2. Like that first we have to add overhead % , after that only we have to add profit % 3. Given fabric is plain dyed fabric , so we should not consider bleaching cost.

Product Costing

1. Material Cost (Generally materials are like, fabric, lining, buttons, zippers, threads, labels, etc) 2. Value added cost (Washing, Garment Dyeing, Printing, Embroidery, etc) 3. Packing cost (Generally packing materials are like, poly bag, hangtags, stickers, carton box, etc.) 4. Making cost (cost of labour for cutting, sewing, finishing, packing, etc.) 5. Over heads 6. Buying agent commission 7. Profit

Example 1

The plain piece dyed pillow cover is made by the 58 inch width poplin fabric and the price of the fabric is Rs. 90 per metre and its consumption is 70 cm for 44 inch width. Other details are given below Making cost is Rs. 8, packing cost is Rs. 3, labels and thread cost is Rs. 4, No.of buttons used in the product is 5 and its unit price is Rs.0.5. Over heads and profit is 15% each and consider the buying agent commission is 5%, overall waste is 4%. Find out the unit cost of the pillow cover. Answer:

Particulars
Fabric cost 70 cm for 44 inch width Therefore For 58 inch consumption is 53cm (70 x44 ) / 58 = 53 Making cost Packing cost Labels and thread cost Button cost (5 x 0.5 = 2.5) Total Material Cost Add overall waste @ 4% Add overhead @ 15% Add Profit @ 15% Add agent commission @ 5% Net cost for the Pillow cover

Price
0.53 x 90 = Rs. 47.7

Rs. 8.00 Rs. 3.00 Rs. 4.00 Rs. 2.50 Rs. 65.20 Rs. 67.81 Rs. 77.98 Rs. 89.68 Rs. 94.16 Rs.94.16

Note: The correct sequence of the adding percentage is Waste, overheads, profit and commission. If any changes happen in this sequence then costing might be wrong.

Example 2

The table cloth, fabric consumption is 88 cm and the price of the fabric is Rs. 100 per metre. After cutting the cut pieces are sending it to printing and embroidery, other details are given below; Printing cost is Rs. 20, the embroidery have 12500 stitches and cost per 1000 stitch is Rs. 1.2 , making cost is Rs. 6, packing cost is Rs. 5, labels and thread cost is Rs. 5, over head is 10 % and profit is 20% overall waste is 5% Find out the unit cost of the table cloth. Answer:

Particulars
Fabric cost ( 0.88 x 100) Printing cost Embroider cost (12500 x 1.2 ) / 1000 Making cost Packing cost Labels and thread cost Total Material Cost Add overall waste @ 5% Add overhead @ 10% Add Profit @ 20% Net cost for the Table Cloth

Price
Rs. 88.00 Rs. 20.00 Rs. 15.00 Rs. 6.00 Rs. 5.00 Rs. 5.00 Rs. 139.00 Rs. 145.95 Rs. 160.55 Rs. 192.65 Rs.192.65

Note: The correct sequence of the adding percentage is Waste, overheads and profit. If any changes happen in this sequence then costing might be wrong.

Example 3 The product specification and cost details are given below for the single bed quilt cover . Workout the cost per piece of the quilt cover.

Product specification: Size is 35 inch X 75 inch. Top side all over embroidered poplin fabric has used and the bottom side piece dyed sheeting fabric has used. The zippers are used as closers. Cost details: Poplin fabric price & consumption Rs. 95 & 1.25 m Sheeting fabric price & Consumption Rs. 45 & 1.3 m Embroidery cost Rs 0.9 per 1000 stitches, total number of stitches are 115000. Making cost Rs.22 Packing cost Rs. 7 Labels and thread cost Rs. 8 Zipper cost Rs. 3 per inch Over all waste 3% Overheads 12% Profit 15% Answer:

Particulars
Poplin Fabric cost ( 1.25 x 95) Sheeting fabric cost (1.3 x 45) Embroider cost (115000 x 0.9 ) / 1000 Making cost Packing cost Labels and thread cost Total Material Cost Add overall waste @ 3% Add overhead @ 12% Add Profit @ 15% Net cost for the Quilt cover

Price
Rs. 118.75 Rs. 58.50 Rs. 103.50 Rs. 22.00 Rs. 7.00 Rs. 8.00 Rs. 317.75 Rs. 327.28 Rs. 366.56 Rs. 421.54 Rs. 421.54

Note: The correct sequence of the adding percentage is Waste, overheads and profit. If any changes happen in this sequence then costing might be wrong.

1.The floral printed with white background cambric has the following particulars. 40sx40s, 132x72, warp crimp 3% weft crimp 4.5% find out the GSM.