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-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

Leave a Comment