Knit Garments (T-Shirt) Costing and Consumption in the Apparel Sector:
Fabric consumption and costing are one of the most important tasks for apparel merchandisers. To get a higher profit percentage from an apparel export order, a merchandiser should have calculated the total costing and consumption by applying accurate fabric consumption calculation formula. In this article, I have presented the total process of t-shirt costing and consumption calculation.
Knit Garments Costing (T-Shirt) and Consumption Calculation Method:
Calculate the price of a round neck T-shirt from the given measurement chart and apparel specifications:
Apparel Specifications | |
Style of T-Shirt | Round neck T-shirt |
Fabric | Body – 100% cotton single jersey |
Collar – Self-fabric | |
G.S.M | 180 |
Color | Red |
Embroidery | Embroidery logo at chest |
Size Ratio | S:M:L:XL = (1:1.5:2:0.5) |
Order Quantity | 10000 pcs |
Solution:
Fabric Consumption Calculation or Apparel Weight Calculation:
We have to follow the below formula during fabric consumption for the apparel in the textile and apparel sector.
Apparel weight calculation,
[{T.L + S.L + (2× H.A) + (2 × S.A)} × (1/2 Chest + S.A)] × G.S.M × 2
= ………………………………………………………………………………… ………… (1)
10000
And,
Round neck collar weight calculation,
{(Neck round + S.A) × (Collar width + S.A) × G.S.M × 2}
= …………………………………………………………………………… ………….. (2)
10000
Where,
T.L stands for Total length,
S.A stands for Seam allowance,
H.A stands for Hem allowance,
S.L stands for Sleeve length.
Apparel weight calculation for middle size i.e. L Size:
Let,
Seam allowance =1cm,
Hem allowance = 2cm,
So,
From equation-01, we get,
{60+23+ (2×2) + (2×1)} × (50+1)] ×180×2
= ……………………………………………………………
10000
= 166.60gms
= 0.167kg
Again,
From equation-02, we get,
{(52+1) × (3+1) ×180×2}
= …………………………………………………..
10000
= 7.8gms
= 0.08kg
So,
L size apparel weight stands at,
= (0.167+0.08) kg
= 0.175kg
Fabric Cost Calculation Per Kg:
SL No. | Particulars | Amount |
01 | Yarn price per kg | Rs. 240.00 |
02 | Knitting rate per kg | Rs. 8.00 |
03 | Dyeing rate per kg | Rs. 70.00 |
04 | Printing rate per kg | Rs. 0.00 |
05 | Compacting rate per kg | Rs. 6.00 |
06 | Heat setting rate per kg (Synthetic fabric) | Rs. 0.00 |
07 | Total | Rs. 324.00 |
08 | Process loss (8-10%) (+) | Rs. 32.40 (+) |
09 | Fabric cost per kg | Rs. 356.00 |
Fabric Cost Calculation Per Pc Apparel:
Fabric cost per apparel,
= (Apparel weight × Fabric cost per kg)
= (0.175 × Rs. 356.40)
= Rs. 62.37
Apparel Costing Format for T-Shirt:
The cost of the apparel is calculated as follows:
SL No. | Particulars | Amount | ||
01 | Fabric cost per apparel | Rs. 62.37 | ||
02 | CMT cost | Rs. 10.00 | ||
03 | Special operations | Embroidery | Rs. 4.00 | Rs. 4.00 |
Accessories and trimmings | Main label | Rs. 0.60 | Rs. 4.55 | |
Wash care label | Rs. 0.30 | |||
Pouch or Polybag | Rs. 1.00 | |||
Hangtag | Rs. 0.50 | |||
Insert card | Rs. 0.80 | |||
Barcode sticker | Rs. 0.60 | |||
Hologram sticker | Rs.0.75 | |||
04 | FOB + Packing | Rs. 6.00 | ||
05 | Subtotal | Rs. 86.92 | ||
06 | Overhead (10%) (+) | Rs. 8.70 | ||
07 | Subtotal | Rs. 95.62 | ||
08 | Rejection (3%) (+) | Rs. 2.87 | ||
09 | Subtotal | Rs. 98.49 | ||
10 | Profit (15%) (+) | Rs. 14.78 | ||
11 | Subtotal | Rs. 113.27 | ||
12 | Agent’s commission | Rs. 5.67 | ||
13 | Insurance | Rs. 1.13 | ||
14 | Apparel price (FOB) in Rs. | Price in Rs. 120.07 | ||
15 | Apparel price (FOB) in the US ($) | Price in US ($) = $2.72 | ||
16 | Apparel price (FOB) in Euro. | Price in Euro = E 1.91 |