**Finishing Cost Calculation Process in Textile Industry:**

**textile finishing process**has great importance in

**textile industry**. Finishing cost also included when total cost is calculated. So, to know the actual method of textile finishing cost calculation is mandatory for the responsible person.

Fig: Textile finishing cost calculation method |

**Textile Finishing Cost Calculation Method:**

SL No. | Parameters | Quantity and Cost |

01 | Fabric quantity | 400kg |

02 | Finishing chemical consumed | 5kg |

03 | Chemical A consumed | 4kg |

04 | Chemical B consumed | 2kg |

05 | 1 day | 3 shift |

06 | Total finishing process time | 4 hours |

07 | Number of labors | 3 |

08 | Labor wages | Rs. 200 per shift |

09 | Compacting | Rs. 8 per kg |

10 | Steam | Rs. 30000 per month |

11 | Power | Rs. 10000 per month |

12 | Transport | Rs. 20000 per month |

13 | Salary | Rs. 50000 per month |

14 | Other expenses | Rs. 40000 per month |

15 | Finishing chemical price | Rs. 250 per kg |

16 | Chemical A price | Rs. 25 per kg |

17 | Chemical B price | Rs. 60 per kg |

18 | Profit | 15% |

**Solution:**

To calculate textile finishing cost and finishing rate, below formula has to apply.

**Finishing cost per kg,**

**…………………………………………………………………….………… …. (1)**

Total finishing production

**Total Finishing Production Calculation:**

= 400kg

**Total Finishing Production Time Calculation:**

= 0.5 shift

**Direct Labor Cost Calculation:**

= Rs. 300

**Direct Material Cost Calculation:**

Finishing chemical cost = Amount of chemical consumed × chemical price = 5× Rs. 250 = Rs. 1250

Chemical B cost = Amount of chemical consumed × chemical price = 2× Rs. 60 = Rs. 120

= Rs. 1470

**Direct Expense Cost Calculation:**

= Rs. 3200

**Overhead Cost Calculation:**

= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(30000 × 0.5)/90} = Rs. 167

= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(20000 × 0.5)/90} = Rs. 112

= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(10000 × 0.5)/90} = Rs. 56

= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(40000 × 0.5)/90} = Rs. 224

= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(50000 × 0.5)/90} = Rs. 279

= Rs. 838

**Now, from equation-01, we get,**

**…………………………………………………………..**

= Rs. 14.50