Apparel Costing Factors in RMG Industry:
When apparel manufacturing factory offers an apparel export order
from apparel buying house then the responsible person should have taken
some necessary steps about the total costing and profit percentage of
that order. By analyzing those steps, he can easily take the decision
about the export order, whether it is perfect for them or not. If he
doesn’t take those steps, he may have faces so many problems after
receiving the order.
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| Steps of apparel costing in clothing factory |
Factors of Apparel Costing in Clothing Manufacturing Factory:
There are mainly four steps of apparel costing in readymade clothing manufacturing factory. Those are listed in the below:
- Calculation of apparel weight (For any size),
- Calculation of fabric cost per kg,
- Calculation of fabric cost per apparel,
- Apparel costing per piece.
All the above four key points have discussed in the following:
1. Calculation of apparel weight:
The apparel weight for any one size, normally the middle size of the all
sizes in an apparel export order enquiry is calculated. For example, if
there are three sizes apparel i.e. S, M, L, then the M size weight is
taken for calculation. The apparel weight can be calculated by following
the actual fabric consumption calculation formula.
2. Calculation of fabric cost per kg:
If the fabric for the apparel export order is purchased directly from
the market which may be readily available, then the price per kg of the
fabric is taken as fabric cost per kg. If the fabric for the apparel
export order is made specifically then the fabric cost per kg is
calculated as follows. It should be noted here that, the below fabric
costing table is just shown a fabric costing format, where costing is
not specified. You have to put required amount or costing amount in the
table during fabric costing calculation.
SL
No.
|
Particulars
|
Costing
Amount
|
01
|
Yarn price per kg
|
Rs. ××××
|
02
|
Knitting rate per kg
|
Rs. ××××
|
03
|
Dyeing rate per kg
|
Rs. ××××
|
04
|
Printing rate per kg
|
Rs. ××××
|
05
|
Compacting rate per kg
|
Rs. ××××
|
06
|
Heat setting rate per kg (Synthetic fabric)
|
Rs. ××××
|
07
|
Total
|
Rs. ××××
|
08
|
Process loss (8-10%)
|
Rs. ××××
|
09
|
Final fabric cost per kg
|
Rs. ××××
|
3. Calculation of fabric cost per apparel:
Fabric cost per apparel can be calculated by multiplying apparel weight and fabric cost per kg.
Fabric cost per apparel = Apparel weight × fabric cost per kg
4. Apparel costing per piece using costing sheet:
The cost of the apparel per piece can be calculated by using apparel
costing sheet which is shown in the following table. One thing is noted
here that, no number is put in the below table. You have to put required
amount or costing value in the apparel costing sheet format during
apparel costing.
Apparel Costing Sheet Format:
SL
No.
|
Particulars
|
Costing
Amount
|
||
01
|
Fabric cost per piece apparel
|
Rs. ××××
|
||
02
|
Cost of making or CMT cost
|
Rs. ××××
|
||
03
|
Special operations
|
Embroidery
|
Rs. ×××
|
Rs. ××××
|
Rs. ×××
|
||||
04
|
Trimmings and Accessories
|
Buttons
|
Rs. ×××
|
Rs. ××××
|
Zippers
|
Rs. ×××
|
|||
Twill tape
|
Rs. ×××
|
|||
Main label
|
Rs. ×××
|
|||
Rs. ×××
|
||||
Poly bag or pouch
|
Rs. ×××
|
|||
Hang tag
|
Rs. ×××
|
|||
Insert card
|
Rs. ×××
|
|||
Barcode sticker
|
Rs. ×××
|
|||
Hologram sticker
|
Rs. ×××
|
|||
05
|
FOB + Packing
|
Rs. ××××
|
||
06
|
Sub total
|
Rs. ××××
|
||
07
|
Overhead (10%) +
|
Rs. ××××
|
||
08
|
Sub total
|
Rs. ××××
|
||
09
|
Rejection (3%) +
|
Rs. ××××
|
||
10
|
Sub total
|
Rs. ××××
|
||
11
|
Profit (%) +
|
Rs. ××××
|
||
12
|
Sub total
|
Rs. ××××
|
||
13
|
Agent’s commission
|
Rs. ××××
|
||
14
|
Insurance
|
Rs. ××××
|
||
15
|
Apparel price (FOB) in Rs.
|
Price in Rs. ××××
|
||
16
|
Apparel price (FOB) in US ($)
|
Price in US ($)
|
||
17
|
Apparel price (FOB) in Euro.
|
Price in Euro.
| ||
