Sourcing Costing

of Apparel
products-
Joggers

SUBMITTED BY:

ABHINAV ANS

HU KEVINCH

ARLES
D E P T. O F F A S H I O N T E C H N O L O G Y S
What is Material The process of calculating the costs at which
inventory goods are recorded into stock, as
Costing? well as their subsequent valuation in
accounting records, is known as material
costing. We deal with each of these ideas
separately.
What is
Material Cost?
The cost of materials needed to
make a product or perform a
service is known as material cost.
All indirect materials required in
the manufacturing process, such
as cleaning supplies, are not
included in the material cost.
To establish the amount of material cost to attribute to a unit of production (such as a completed finished goods item),
follow these steps:
• Determine the standard quantity of material used in the production of one unit.

• Add the normal quantity of scrap generated during the production of one item.

• Calculate the average quantity of scrap generated throughout the setup of the production run and allocate it
to each individual unit.
• If any scrap is sold, divide the proceeds among the individual units.

For many materials, the cost of scrap and the gain from scrap sales are so little that allocating it to the material cost
is pointless.

Once the material cost has been established as a standard, you can calculate the material yield variation to check if
actual material usage was as predicted, or the purchase price variance to see if the material purchase price was as
expected. These differences might be used to investigate issues in a company's production and purchasing departments.
Product Selected:
Joggers
List of Raw Materials
• Fabrics
• Lining (for pocketing fabric)
• Sewing threads
• Elastic
• Drawstring
• Labels
• Price tags
• Packaging materials
Method of Garments
Costing for

Joggers (Buying Costing):

A garments merchandiser is too

efficient who can make perfect costing
of any garments. Costing is an
important part of garments
merchandising. Order profit totally
depends on it. As its importance on
garments merchandising, today I will
present an easy method of garments
costing for a Jogger.
Method of Garments Costing for Joggers:

At the starting of garments costing for a jogger, a garments merchandiser should be known about the following matters:
• Yarn Price

• Fabric making and Washing Cost

• Dyeing Cost

• Printing cost

• Embroidery Cost

• Cost of Making (CM)

• Accessories Cost

• Commercial Cost

• Others Cost
So, now with the help of fabric consumption we
can calculate,
• Actual fabric cost per dozen is
(A)
• Embroidery cost per dozen
(B)
• Accessories Cost per dozen
(C)
• Cost of making (CM)
(D)
• Commercial cost
(E)
• Others cost
(F)
Here,
• By adding A, B, C, D, E and F, we will
achieve the total FOB cost of garments
per dozen for the above order.
• Total FOB cost per dozen = (A +B + C
+ D+ E + F + G)
• In buying house costing, profit% for the
buying house (here-20%) should be added
with total FOB cost per dozen.
• Total FOB cost per dozen with profit%
= (Total FOB cost per dozen + 20%
commission)
• Now, Total FOB cost per pcs = (Total
FOB cost per dozen with profit% /
12 )