How to Calculate Printing Cost in Apparel Industry?

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Printing Cost Calculation in Apparel and Textile Sector:

Print is a very popular portion for all types of apparel specially knit items. You will definitely received apparel export order from the buyer including print option in apparel. So, to learn printing cost calculation is mandatory for all the apparel merchandisers.

Printing cost calculation method in textile
Fig: Printing cost calculation method in textile

Printing Cost Calculation Method in Textile:

Calculate the printing cost and printing rate per kg from the below given charts.

Chart-01:
Parameters
Quantity
Fabric quantity
600kg
Number of colors
3
Print paste consumption per kg of fabric
300gm
Color 1 coverage
50%
Color 2 coverage
30%
Color 3 coverage
20%
Chart-02:
Printing paste recipe:
Material
Color-01
Color-02
Color-03
Dye
4%
6%
2%
Chemical
10%
10%
10%
Thickener
86%
84%
88%
Total
100%
100%
100%
Chart-03:
Parameters
Cost or Price
Dyes (For color-01)
Rs. 400 per kg
Dyes (For color-02)
Rs. 300 per kg
Dyes (For color-03)
Rs. 250 per kg
Chemical
Rs. 80 per kg
Thickener
Rs. 40 per kg
1 day
3 shift
Total process time
12hours
No. of labors
6
Labor wages
Rs. 200 per shift
Curing
Rs. 8 per kg
Steam
Rs. 70000 per month
Power
Rs. 60000 per month
Transport
Rs. 30000 per month
Salary
Rs. 120000 per month
Other expenses
Rs. 100000 per month
Profit
20%
Solution:

The below formula has to follow during printing cost calculation in textile and apparel industry.

Printing cost per kg,

   Direct Material cost+ Direct labor cost+ Direct expense cost+ Overhead cost
= …………………………………………………………………………………………..          ……… (1)

                                               Total print production

Now,
Total production,
= Fabric input

= 600kg

Again,
Total production time,
= Process time
= 12hours
= (12/8) shift

= 1.5 shift

Direct Material Cost Calculation:
 
Total printing paste required,
= Total fabric × print paste consumption per kg of fabric
= 600× 300gm
= 180000gm

= 18kg

Again,

Printing paste required per color = Total printing paste × color coverage

So,
Printing paste needed for color-01 = 180kg× 50% = 90kg,
Printing paste needed for color-02 = 180kg× 30% = 54kg,

Printing paste needed for color-03 = 180kg× 20% = 36kg.

Material Used Per Color:

 

In case of color-01 (90kg),

Dye = 90kg× 4% = 3.6kg× Rs. 400 = Rs. 1440
Chemical = 90kg× 10% = 9kg× Rs. 80 = Rs. 720

Thickener = 90kg× 86% = 86.4kg× Rs. 40 = Rs. 3456

In case of color-02 (54kg),

Dye = 54kg× 6% = 3.24kg× Rs. 300 = Rs. 972
Chemical = 54kg× 10% = 5.40kg× Rs. 80 = Rs. 432

Thickener = 54kg× 84% = 45.36kg× Rs. 40 = Rs. 1814

In case of color-03 (36kg),

Dye = 36kg× 2% = 0.72kg× Rs. 250 = Rs. 180
Chemical = 36kg× 10% = 3.6kg× Rs. 80 = Rs. 288

Thickener = 36kg× 88% = 31.68kg× Rs. 40 = Rs. 1267

So,
Direct material cost stands at,
= (Color-01+ color-02+ color-03)
= Rs. (1440+720+3456+972+432+1814+180+288+1267)

= Rs. 10569

Direct Labor Cost Calculation:

 

Operator wage,
= No. of labor × No. of shift × Labor wage per shift
= 6×1.5× Rs.200

= Rs. 1800

Direct Expense Cost Calculation:

 

Curing = (Total production × Curing cost per kg) = (600× Rs.8)= Rs. 4800

Overhead Cost Calculation:

 

In case of steam,

= (Cost × 2 shifts)/ (30days × 3 shifts in a day) = {(70000×1.5)/90} = Rs. 1167

In case of transport,

= (Cost × 2 shifts)/ (30days × 3 shifts in a day) = {(30000×1.5)/90} = Rs. 500

In case of power,

= (Cost × 2 shifts)/ (30days × 3 shifts in a day) = {(60000×1.5)/90} = Rs. 1000

In case of other expenses,

= (Cost × 2 shifts)/ (30days × 3 shifts in a day) = {(100000×1.5)/90} = Rs. 1667

In case of salary,

= (Cost × 2 shifts)/ (30days × 3 shifts in a day) = {(120000×1.5)/90} = Rs. 2000

So,
Total overheads cost,
= Rs. 1167 + Rs. 500 + Rs. 1000 + Rs. 1667 + Rs. 2000

= Rs. 6334

Now, from equation-01, we get,

Printing cost per kg,

      (Rs. 10569 + Rs. 1800 + Rs. 4800 + Rs. 6334)
= ………………………………………………….……………..
                                   600

= Rs. 39.20

After adding 20% profit, cost stands at
= {39.20/ (1-20%)}
= Rs. 49.00

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