COSTING OF APPAREL PRODUCTS

Portofino Shirt
APPAREL COSTING
 Apparel costing in the garment making process is
one of the most complex procedures.
 Purchasing of raw materials, cost of dyeing, knitting,
printing, transport cost, packaging, banking charges,
overheads and cost of trims and accessories used
all are included in it.
 The merchandiser and the top management of a
company are actively involved in deciding the cost
of a garment.
COSTS
 A direct cost is a price that can be completely attributed to the production of
specific goods or services.
 Some costs, such as depreciation or administrative expenses, are more difficult
to assign to a specific product and therefore, are considered to be indirect
costs.
Style of Garment
 The garment chosen is
a Slim Fit, Sleeveless,
Portofino Shirt in a
vintage style with a
regular collar and four
hole buttons. It also has
a yoke with a single box
pleat back and a straight
placket.

Front Back
TENDER
BILL OF MATERIAL
PURCHASE ORDER
THE COST SHEET
ANNUAL USAGE

GSM = 114g/m²
Area = 2 X 1
For 1 garment = 2 X 114 = 228g/m²
Total pieces produced per year = 182500
Therefore,
Annual consumption = 182500 X 0.228 = 41610
ECONOMIC ORDER QUANTITY

EOQ = √2AB/CS

A = Annual usage
B = Buying cost per order
C = Cost per order
S = Storage inventory cost per annum
EOQ
Pieces produced per day = 500
Hence, pieces produced per year = 182500
Annual usage = 182500 X 0.228
= 41610
Buying cost per order = 12
Cost per order = 270
Storage and carrying cost = 20%
EOQ = √2AB/CS
= √2 X 41610 X 12 / 270 X 54
= 8 Orders.
PROFIT ANALYSIS
The total cost of the production is 3274.5 $,
the profit value that the company earns is 491.2 $,
hence, the Profit % of the company is 15%.
THANK YOU