Garment Costing Sheet Analysis:
A costing sheet is a statement or format where all the costs are entered in an orderly manner to ascertain the total cost of a product or process. It is also known as the working sheet or worksheet. Garment costing sheet has too much importance in the readymade apparel manufacturing industry. That is why I have presented here a garment costing sheet format and explained all the components.
Major Components of Garments Costing Sheets:
A costing sheet or cost sheet consists of four major components. Those are in the below:
- Prime cost,
- Factory cost or work cost,
- Office cost,
- Total cost.
All the above points have explained in the following:
1. Prime cost:
Prime cost consists of direct material, direct labor, and direct expenses. It is also termed as basic cost, flat cost, and first cost.
Prime cost= Direct material (D.M) + Direct labor (D.B) + Direct expenses (D.E)
2. Factory cost or work cost:
Factory cost or work cost consists of prime cost and works or factory overhead. It is also known as manufacturing cost or apparel production cost.
Factory cost= Prime cost + Factory overheads
3. Office cost:
Office cost consists of a factory or work cost and office and administration overheads. Office cost is also known as cost or apparel production.
Office cost= Factory cost or work cost + Office and administration overheads
4. Total cost:
Total cost is ascertained by adding, selling, and distribution overheads to the cost of apparel production of goods sold. It is also known as “cost of sales”.
Total cost= Office cost + Selling and distribution overheads
Garment Costing Sheet Format:
|SL No.||Types of cost||Particulars||Amount (in Taka)|
|01||Primary cost||Direct material||12,200|
|Total prime cost||17,000|
|02||Factory cost or work cost||Primary cost||17,000|
|Total factory cost||40,000|
|03||Office cost||Factory cost||40,000|
|Total office cost||70,000|
|04||Total cost||Office cost||70,000|