How to Calculate Dyeing Cost in Textile Wet Processing Sector?

To know the dyeing cost calculation is very important for all the persons related with textile dyeing job. There are so many who still don’t know the actual method of dyeing cost calculation in wet processing industry. This article will be very useful for them. In another article i have shared How to Calculate Knitting Cost in Textile Industry.

Find out the dyeing cost and rate per kg from the given chart.

Parameters	Amount or Quantity
Fabric quantity	400kg
Dye A consumed	5kg
Dye B consumed	3kg
Dye C consumed	2kg
Chemical A consumed	50kg
Chemical B consumed	10kg
Shift in a day	3 shift
Total process time	12hrs
No. of labors	3
Labor wages	Rs. 200 per shift
Steam	Rs. 75000 per month
Power	Rs. 50000 per month
Transport	Rs. 20000 per month
Salary	Rs. 100000 per month
Other expenses	Rs. 120000 per month
Dyes A price	Rs. 250 per kg
Dyes B price	Rs. 300 per kg
Dyes C price	Rs. 400 per kg
Chemical A price	Rs. 5 per kg
Chemical B price	Rs. 50 per kg
Profit	20%

To calculate the dyeing cost in textile sector, the following formula have to maintained:

Dyeing cost per kg,

   Direct materials (D.M) + Direct labor (D.L) + Direct expense (D.E) + Overhead

= ………………………………………………………………………………………….…             ….. (1)

                                                 Total dyeing production

Total production
= Fabric input
= 400kg

Total production calculation,
= Process time
= 16hrs
= (16/8) shift
= 2 shift

Dye A cost = Amount of dye × Dye price = 5×Rs. 250 = Rs. 1250

Dye B cost = Amount of dye × Dye price = 3×Rs. 300 = Rs. 900

Dye C cost = Amount of dye × Dye price = 2×Rs. 400 = Rs. 800

Chemical A cost = Amount of chemical × Chemical price = 50×Rs. 5 = Rs. 250

Chemical B cost = Amount of chemical × Chemical price = 30×Rs. 50 = Rs. 1500

So,

Dyeing material cost stands at,

= Rs. 1250 + Rs. 900 + Rs. 800 + Rs. 250 + Rs. 1500

= Rs. 4700

Operator wages,

= No. of labor × No. of shift × labor wage per shift

= 4×2×Rs. 200

= Rs. 1600

Direct Expense Cost (D.E) Calculation:

Direct expense = 0

Overheads Cost Calculation:

In case of steam,

= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(75000×2)/90} = Rs. 1667

In case of transport,

= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(20000×2)/90} = Rs. 445

In case of salary,

= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(100000×2)/90} = Rs. 2224

In case of other expenses,

= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(120000×2)/90} = Rs. 2667

So,

Total overheads,

= Rs. 1667 + Rs. 1112 + Rs. 445 + Rs. 2224 + Rs. 2667

= Rs. 8115

Now, from equation (1), we get,

Dyeing cost per kg,

= {(4700+ 1600+ 0+ 8115)/400}

= Rs. 36.00

After adding 20% profit, dyeing rate stands at

= {36/ (1-20%)}

= Rs. 45.00