Professional Documents
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Costing of Men's Shirt
Costing of Men's Shirt
Costing of Mens
Formal Shirt
Submitted To:
Submitted By:
Chahak Nagpal
Assistant Professor
Deepali Pandit
NIFT, Kangra
Lovely Gupta
Rashmi Dhara
Shikhar Maurya
DFT - VI
ABSTRACT
In this document, we present a theoretical model, which grows together the elements of Costing
and material requirement in Apparel Industry. The data have been gathered from various sources
such as our visit to NEHRU PLACE and also from academic literature, and a qualitative analysis
has been carried out.
The core category of the model is Costing. The analysis and the model answer the question of
principles and practices should be considered while doing costing for formal mens Shirt.
It is based on the philosophies that are linked to the categories: cost estimation, types of fabric
used, timely delivery, production methods, saving resources and etc.
CONTENTS
1)
2)
3)
4)
5)
COST CALCULATION
Cost calculation is the computation of the actual cost of manufacturing. This process is a detailed
calculation of the costs required to manufacture a style based upon available data. A detailed
analysis is made based upon prototypes. This level of costing is important in determining price
values.
Production Costing: Production costing is related with the actual costs of production but does not
take into consideration the overhead costs and profit margins.
Accounting Costing: Accounting costing is used to make the final adjustments to all elements of
costing and pricing processes.
Price competitiveness.
Faster lead times.
High raw material base.
Full service offering.
Access to market. "A Cost is the value of economic resources used as a result of producing
or doing the things costed".
Components (elements)
-
Business Function
-
Aggregate or average
-
Assets or expenses
-
To define the unit cost of goods each component (element) of a garment should be defined clearly.
The unit cost of goods includes all expenses involved in the manufacture of an apparel product.
The cost of goods is summarized under the categories of material cost, labor cost and overhead
costs.
MATERIAL COST:
Material costs include fabric and accessory costs. Fabric is the most costly material in most garment
styles. Fabric accounts for 45% of a garment according to the statistical data. Since fabric is the
most significant factor in costing a garment, an accurate calculation for the required amount of
fabric per garment is essential. There are two stages to determine fabric expenditure.
First of all, unit fabric price is defined. Accordingly, the expenditure of fabric per unit garment is
determined. To accurately determine the average amount of fabric needed for a garment style,
marker plans are prepared by using the size scale and the fabric width.
After determining the consumption of fabric required to produce a style, including a waste factor,
total cost of the fabric is defined by multiplying the expenditure value by the price per square
meter.
For all other direct materials such as trim, thread, buttons, zippers, labels, shoulder pads and poly
bags, quantities per garment are measured in units, sets or meters. Waste factors are also
calculated to accommodate materials that are dropped, broken or damaged during the
manufacturing process.
LABOR COST:
Labor costs include those costs that change the condition or physical appearance of raw materials.
Examples of direct labor functions are cutting, bundling, folding, sewing and finishing. Labor
accounts for a large portion of the total cost of garments and sewing is the most costly process.
Regarding this, each individual operation in the production of a garment should be defined and
total time of sewing operations should be carefully calculated.
OVERHEAD COST:
Overhead costs include all the costs except material and labor costs. Manufacturing overhead,
general and administrative expenses are all included in overhead costs.
Marketing and selling expenses, merchandising, design or product development expenses and
distribution expenses can be examples of this group.
0.529 YDS
0.229 YDS
0.666 YDS
0.666 YDS
0.741YDS
0.99 YDS
0.067 YDS
0.054 YDS
Pocket
8 ( Pocket Length) X 6 ( Pocket Width) / 36 X 44
Total Fabric Consumption
0.03 YDS
2.406 YDS
ASSUMPTIONS:
-
COST SHEET
DIRECT MATERIAL
S.No.
Description
Unit of
Measurement
Cost
Consumption/ Cost/piece
piece
meters
100
2.2
220
pieces
1.5
1.5
pieces
1.5
1.5
spool
unit
TOTAL
4
0.25
1
12
4
3
235
FABRIC
1 100% cotton
TRIMS
2 Fusing
material
3 Brand and
Size Label
4 Care and
Code Label
5 Threads
6 Buttons
DIRECT WAGES
S.No.
Operation
1 Inspection
2 Spreading
and Marking
3 Cutting
4 Sewing
5 Finishing
Estimated
SAM
0.1
0.2
Skill Matrix
Cost/ unit
Cost/piece
skilled
skilled
3.5
3.5
0.35
0.7
0.1
22.3
0.5
TOTAL
skilled
skilled
Semi - skilled
3.5
3.5
3.5
0.35
78.05
1.75
81.2
DIRECT EXPENSES
S.No.
Description
1
2
3
4
Carton Box
Poly Bag
Hand Bag
Packaging
Labor Cost
PACKAGING COST
Unit of
Cost (Rs)
Measurement
piece
3
piece
0.6
piece
0.4
SAM
8
Consumption/piece Cost/piece
0.1
1
1
0.1
0.3
0.6
0.4
0.8
TOTAL
2.1
COST SHEET
Product
Style Number
Buyer
Width
42
Particulars
Direct Material
Direct Wages
Direct Expenses
PRIME COST
XY6789
Blackberry
Mono Color
Country
India
Fabric
100%
cotton
Details
Cost (Rs)
235
81.2
2.1
318.3
Factory Overheads
TOTAL FACTORY COST
5%
15.9
334.2
8%
26.7
7%
25.2
3%
10.8
396.9
Profit
Total Cost/ Piece
20%
79.4
476.2
360.9
CONCLUSION
Costing is a very essential part of a garment. Cost sheet helps a manufacturer to know every minute
details of the cost that is included in production of a single piece of garment. It ultimately helps to
decrease the production cost and increase profit.
Costing should be done at a very initial phase of product development. It should be done on properly
and in accordance to the target market. The success of a brand depends on how well the costing of its
product is done.
The above mentioned cost sheet of a basic sheet tells us about all the factors that cost in production of
mens basic formal shirt. The cost sheet may vary from industry to industry but its particulars are
always the same.