**Apparel Cost Calculation Method for Export Order**

**Apparel Costing for Export Order:**

Fig: Apparel cost calculation method for an export order |

**Apparel Costing Methods for Export Order:**

**Example:**

Find out the total cost of 10000 pcs polo shirt with 15% profit. All the data are given in the below:

**Knitting**cost or charge- Rs. 16000

(Factory: office: S&D = 3: 1.5:0.5)

Salary- Rs. 150000

(Factory: office: S&D = 1.5: 2.5:1)

Spare parts in factory- Rs. 5000

(Factory: office: S&D = 1:2.5:1.5)

Transport- Rs. 40000

(Factory: office: S&D = 1:1:2)

Other expenses- Rs. 100000

(Factory: office: S&D = 3:5:2)

**Solution:**

**Primary or Prime Cost Calculation Method:**

**Prime cost = (Direct material + Direct labor + Direct expenses) …………………….. (1)**

= Rs. 50000

Direct labor = Rs. 90000

**Knitting**charge + Dyeing charge + compacting charge)

= Rs. 188000

= Rs. 778000

**Factory Cost Calculation Method:**

Factory cost,

= (Prime cost + Factory indirect material + Factory indirect labor + indirect expense) ………. (2)

= Rs. 6200

= Rs. 45000

So, Factory indirect labor is 45000

= Rs. 70000

= Rs. 899200

**Office Cost Calculation Method:**

Office cost,

= (Factory cost + Office indirect material + Office indirect labor + Office expense) ……… (3)

= Rs. 3000

= Rs. 75000

= Rs. 75000

= Rs. 1052200

**Total Cost Calculation Method:**

Total cost,

= (Office cost + S&D indirect material + S&D indirect labor + S&D indirect expenses)……… (4)

= Rs. 1800

= Rs. 30000

= Rs. 45000

= Rs. 1129000

= Rs. 112.90

After adding 15% profit,

= Rs. 132.83