How to Calculate Apparel Costing for Boxer Shorts?

Apparel Costing Method for Boxer Shorts:

Apparel merchandiser plays an important role in apparel export business. He has to calculate the total consumption and costing for that order. As a result, apparel merchandisers must have to know the proper consumption and costing calculation method. Now, I have shared the total costing calculation method for boxer shorts. 


Apparel Costing Calculation Method for Boxer Shorts:

Calculate the apparel cost for boxer shorts by following the below tables.

Specifications of Boxer Shorts
Style of  Apparel
Boxer shorts, inner elastic 
Fabric
Body – 100% Cotton, (1×1) Rib, Auto stripe design
Stripe Repeat (2cm)
White- 0.5cm, Red- 0.7cm, Black- 0.2cm, Yelow-0.6cm
G.S.M
200 G.S.M
Size Ratio
S:M:L:XL = (1:1.5:2:0.5)
Quantity of Order
10000 pcs
Boxer shorts costing method
Fig: Boxer shorts costing method

Solution: 

Fabric Consumption for Boxer Shorts:
To calculate the weight of boxer shorts, we have to follow the below fabric consumption formula,

Fabric consumption for boxer shorts,

{(T.L + E.W + H.A + S.A) × (Maximum with wise measure + S.A) × G.S.M × 2}
= …………………………………………………………………………………………….       … (1)
10000

Where,
S.A stands for Seam allowance,
T.L is stands for Total length,
H.A stands for Hem allowance,
E.W stands for Elastic width.
N.B: (Maximum width measure is thigh round = (52×2) = 104

Let,
Seam allowance is 2cm,
Hem allowance is 2cm.

So,
From equation-01, we get,

Fabric consumption for L size boxer shorts is, 

{42+4+2+2) × (56+2) × 200×2}
= ……………………………………
10000

= 113.68gms
= 0.114kg

Calculation of Fabric Cost Per Kg:
SL No.
Particulars
Costing
01
Yarn cost per kg
White yarn = {(0.5/2)×Rs. 260} = Rs. 65
Rs. 286.00
02
Red yarn = {(0.7/2)×Rs. 300} = Rs. 105
03
Black yarn = {(0.2/2)×Rs. 320} = Rs. 32
04
Yellow yarn = {(0.6/2)×Rs. 280} = Rs. 84
05
Knitting rate per kg (Auto stripes)
Rs. 40.00
06
Dyeing rate per kg (Washing)
Rs. 10.00
07
Compacting rate per kg
Rs. 6.00
08
Total
Rs. 342.00
09
Process loss (10%) (+)
Rs. 34.20
10
Fabric cost per kg
Rs. 376.20

Calculation of Fabric Cost Per Piece Boxer Shorts:  

Fabric cost per Boxer,
= (Fabric consumption per piece boxer × Fabric cost per kg)
= (0.114kg × Rs. 376.20)
= Rs. 42.88

Apparel Costing for Boxer Shorts:
The cost of the boxer shorts is calculated as follows:
SL No.
Particulars
Costing
01
Fabric cost per pc boxer shorts
Rs. 42.88
02
Cost of making cost or CMT cost
Rs. 7.00
03
Trimmings & accessories
Main label
Rs. 0.60
Rs. 8.55
Wash care label
Rs. 0.30
Waist elastic (0.70m)
Rs. 2.80
Pouch or Poly bag (3 pack)
Rs. 1.50
Hang tag
Rs. 0.50
Insert card
Rs. 1.50
Barcode sticker
Rs. 0.60
Hologram sticker
Rs.0.75
04
FOB + Packing (Rs. 1 per 30gms of apparel) 120gms/30gms = Rs. 4
Rs. 4.00
05
Sub total
Rs. 62.43
06
Overhead cost (10%) (+)
Rs. 6.24
07
Sub total
Rs. 68.67
08
Rejection costing (3%) (+)
Rs. 2.10
09
Sub total
Rs. 70.77
10
Profit percentage (15%) (+)
Rs. 10.62
11
Sub total
Rs. 81.39
12
Apparel price (FOB) in Rs.
Price in Rs. 81.39
13
Apparel price (FOB) in US ($)
Price in US ($) = $1.85
14
Apparel price (FOB) in Euro.
Price in Euro = E 1.30

 

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