Apparel Costing Sheet and Its Components

Apparel Costing Sheet Analysis:
Costing sheet is a statement or format where all the costs are entered in orderly manner to ascertain the total cost of a product or process. It is also known as working sheet or work sheet. 

Apparel costing sheet format used in apparel industry
Apparel costing sheet format used in apparel industry
Major Components of Apparel Costing Sheets:
A costing sheet or cost sheet consists of four major components. Those are in the below:
  1. Prime cost,
  2. Factory cost or work cost,
  3. Office cost,
  4. Total cost.
All the above points have explained in the following:

1. Prime cost:
Prime cost consists of direct material, direct labor and direct expenses. It is also termed as basic cost, flat cost and first cost.

Prime cost= Direct material (D.M) + Direct labor (D.B) + Direct expenses (D.E)

2. Factory cost or work cost:
Factory cost or work cost consists of prime cost and works or factory overhead. It is also known as manufacturing cost or apparel production cost.

Factory cost= Prime cost + Factory overheads

3. Office cost:
Office cost consists of factory or work cost and office and administration overheads. Office cost also known as cost or apparel production.

Office cost= Factory cost or work cost + Office and administration overheads

4. Total cost:
Total cost is ascertained by adding, selling and distribution overheads to cost of apparel production of goods sold. It is also known as “cost of sales”.

Total cost= Office cost + Selling and distribution overheads

Apparel Costing Sheet Format:
SL No.
Types of cost
Particulars
Amount (in Taka)
01
Primary cost
Direct material
12,200
Direct labor
4,000
Direct expense
800
Total prime cost
17,000
02
Factory cost or work cost
Primary cost
17,000
Factory overheads
23,000
Total factory cost
40,000
03
Office cost
Factory cost
40,000
Office overheads
30,000
Total office cost
70,000
04
Total cost
Office cost
70,000
Selling overheads
20,000
Total cost
90,000