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 (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