Knit Garments Costing and Consumption Calculation Method

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 and consumption calculation method
Fig: Knit garments costing and consumption calculation method

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-ShirtRound neck T-shirt
FabricBody – 100% cotton single jersey
Collar – Self-fabric
G.S.M180
ColorRed
EmbroideryEmbroidery logo at chest
Size RatioS:M:L:XL = (1:1.5:2:0.5)
Order Quantity10000 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.ParticularsAmount
01Yarn price per kgRs. 240.00
02Knitting rate per kgRs. 8.00
03Dyeing rate per kgRs. 70.00
04Printing rate per kgRs. 0.00
05Compacting rate per kgRs. 6.00
06Heat setting rate per kg (Synthetic fabric)Rs. 0.00
07TotalRs. 324.00
08Process loss (8-10%) (+)Rs. 32.40 (+)
09Fabric cost per kgRs. 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.ParticularsAmount
01Fabric cost per apparelRs. 62.37
02CMT costRs. 10.00
03Special operationsEmbroideryRs. 4.00Rs. 4.00
 Accessories and trimmingsMain labelRs. 0.60Rs. 4.55
Wash care labelRs. 0.30
Pouch or PolybagRs. 1.00
HangtagRs. 0.50
Insert cardRs. 0.80
Barcode stickerRs. 0.60
Hologram stickerRs.0.75
04FOB + PackingRs. 6.00
05SubtotalRs. 86.92
06Overhead (10%) (+)Rs. 8.70
07SubtotalRs. 95.62
08Rejection (3%) (+)Rs. 2.87
09SubtotalRs. 98.49
10Profit (15%) (+)Rs. 14.78
11SubtotalRs. 113.27
12Agent’s commissionRs. 5.67
13InsuranceRs. 1.13
14Apparel price (FOB) in Rs.Price in Rs. 120.07
15Apparel price (FOB) in the US ($)Price in US ($) = $2.72
16Apparel price (FOB) in Euro.Price in Euro = E 1.91

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