**How to Calculate Knitting Cost in Textile Knitting Industry?**

**Knit Fabric Cost and Knitting Cost Calculation in Textile:**

**knit fabric**cost and knitting rate calculation.

Knitting cost calculation method in textile |

**Knitting Cost Calculation Method in Textile Sector:**

Parameters | Amount or Quantity |

Total machine | 2 |

Shift per day | 3 |

Production capacity per shift | 70kg per machine |

Yarn used | 1000kgs |

Yarn price | Rs. 200 per kg |

Knitting wastage | 2% |

Operator wages | Rs. 200 per shift |

Helper wages (In production) | Rs. 100 per shift |

Inspection wages | Rs. 200 per shift |

1 helper | 2 machines |

1 operator | 1 machine |

Inspection worker | 1 person |

Power | Rs. 4000 per month |

Rent | Rs. 8000 per month |

Transport | Rs. 6000 per month |

Salary | Rs. 25000 per month |

Other expenses | Rs. 24000 per month |

Profit | 10% |

**Solution:**

To calculate the knitting cost and rate we have to follow the below knitting cost calculation formulas:

**1. Fabric Manufacturing and Selling Cost Calculation:**

**Knit fabric cost/kg,**

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

Total production

**2. Knit Fabric Manufacturing Cost calculation:**

**Knitting cost/kg,**

**……………………………………………………………………………**………….. (2)

Total production

**Total Production Calculation:**

= 980kg

**Total Production Time Calculation:**

Total production time = Total production/production capacity per shift …………………… (3)

= 140kg

= 7 shift

**Direct Material (D.M) Cost calculation:**

= Rs. 200000

**Direct Labor (D.L) Cost calculation:**

**Inspection** wage = No. of inspector × No. of shifts × Rs. 100 = 1×7×200 = Rs. 1400

= Rs. 4900

**Direct Expense (D.E) Cost Calculation:**

Direct expense = 0

**Overhead (OH) Cost Calculation:**

= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(4000×7)/90} = Rs. 311

= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(8000×7)/90} = Rs. 622

= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(6000×7)/90} = Rs. 467

= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(25000×7)/90} = Rs. 1944

= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(24000×7)/90} = Rs. 1867

= Rs. 5211

= {(200000+4900+0+5211/980)} = Rs. 214.40

= Rs. 238.20

= Rs. 10.30

**knitting**rate stands at,