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Prime School BD (PSBD24) is popular blog site about technology, merchandising, textile & accounting rules in Bangladesh. Also the post that are publishing about Accounting tutorial, Textile, RMG, Merchandising, Knit Merchandising, Woven Merchandising, Apparel Merchandising, Garments, Dyeing, Spinning, Washing, Buying House, else many things with tips & tricks. বদিউজ্জামান ( রুবেল )
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Typical Costing of a Product in Export Oriented Garment Industry

Introduction: 
Costing is very important for a productive factory. Without proper costing all production curriculums will go vain. Because a factory cannot reach to its goal without achieving good profit and good profit is not possible without skillful costing.

Costing of the product: 

Let, price of yarn is $ 3.00/kg 
Process loss of yarn for knitting (10%) = $0.30 
Knitting fabric cost = $3.30 
Cost of dyes & chemicals = $2.50 
Process loss for dyeing (12%) = $0.30 
Dyed fabric cost = $6.10 
Packing cost = $0.05 
Production cost of fabric = $6.15 
Fabric price (with 25% margin) = $7.79 

Fabric consumption/doz,  

   (Body length + Sleeve length + 10) x Chest length x 2 GSM x 12 
= …………………………………………………………....................………
                                            10000000 

Garment specification: 

Body length = 78 cm 
Sleeve length = 33 cm 
Chest length = 62 cm 
GSM = 210 

                                           (78 + 33) x 62 x 2 x 210 x 12 
Fabric consumption/doz. = ………………………………
                                                            1000 
= 3.469 kg 

Fabric consumption/doz (with 10% wastage) = 3.816 kg 
Body fabric cost/doz = $(7.79 × 3.816) = $29.73 
Cost of collar & cuff/doz = $4.00 
Cost of trims = $2.25 
Cost of trims (with 5% process loss) = $2.36 
Production cost of garment/doz = $36.09 
Garment price/doz (with 25% profit) = $45.12 

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