How to Calculate Knitting Cost in Textile Knitting Industry?
Knit Fabric Cost and Knitting Cost Calculation in Textile:
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Knitting cost calculation method in textile |
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%
|
To calculate the knitting cost and rate we have to follow the below knitting cost calculation formulas:
Knit fabric cost/kg,
Total production
2. Knit Fabric Manufacturing Cost calculation:
Knitting cost/kg,
Total production
= 980kg
Total Production Time Calculation:
Total production time = Total production/production capacity per shift …………………… (3)
= 140kg
= 7 shift
= Rs. 200000
Inspection wage = No. of inspector × No. of shifts × Rs. 100 = 1×7×200 = Rs. 1400
= Rs. 4900
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