How to Calculate Dyeing Cost in Textile Wet Processing Sector?

Estimation of Dyeing Cost in Textile Sector:
To know the dyeing cost calculation is very important for all the persons related with textile dyeing job. There are so many who still don’t know the actual method of dyeing cost calculation in wet processing industry. This article will be very useful for them. In another article i have shared How to Calculate Knitting Cost in Textile Industry.

Dyeing cost calculation method in textile industry
Dyeing cost calculation method in textile industry
Dyeing Cost Calculation Method in Textile Industry:
Find out the dyeing cost and rate per kg from the given chart.

Parameters
Amount or Quantity
Fabric quantity
400kg
Dye A consumed
5kg
Dye B consumed
3kg
Dye C consumed
2kg
Chemical A consumed
50kg
Chemical B consumed
10kg
Shift in a day
3 shift
Total process time
12hrs
No. of labors
3
Labor wages
Rs. 200 per shift
Steam
Rs. 75000 per month
Power
Rs. 50000 per month
Transport
Rs. 20000 per month
Salary
Rs. 100000 per month
Other expenses
Rs. 120000 per month
Dyes A price
Rs. 250 per kg
Dyes B price
Rs. 300 per kg
Dyes C price
Rs. 400 per kg
Chemical A price
Rs. 5 per kg
Chemical B price
Rs. 50 per kg
Profit
20%

Solution:
To calculate the dyeing cost in textile sector, the following formula have to maintained:

Dyeing cost per kg,

   Direct materials (D.M) + Direct labor (D.L) + Direct expense (D.E) + Overhead
= …………………………………………………......…………………………..........…             ..... (1)
                                                 Total dyeing production 

Total Dyeing Production Calculation:

Total production
 = Fabric input
 = 400kg

Total Production Time Calculation:

Total production calculation,
= Process time
= 16hrs
= (16/8) shift
= 2 shift

Direct Material Cost (D.M) Calculation:

Dye A cost = Amount of dye × Dye price = 5×Rs. 250 = Rs. 1250
Dye B cost = Amount of dye × Dye price = 3×Rs. 300 = Rs. 900
Dye C cost = Amount of dye × Dye price = 2×Rs. 400 = Rs. 800

Chemical A cost = Amount of chemical × Chemical price = 50×Rs. 5 = Rs. 250
Chemical B cost = Amount of chemical × Chemical price = 30×Rs. 50 = Rs. 1500

So,
Dyeing material cost stands at,
= Rs. 1250 + Rs. 900 + Rs. 800 + Rs. 250 + Rs. 1500
= Rs. 4700

Direct Labor Cost (D.L) Calculation:
Operator wages,
= No. of labor × No. of shift × labor wage per shift
= 4×2×Rs. 200
= Rs. 1600

Direct Expense Cost (D.E) Calculation:

Direct expense = 0

Overheads Cost Calculation:

In case of steam,
= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(75000×2)/90} = Rs. 1667

In case of transport,
= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(20000×2)/90} = Rs. 445

In case of power,
= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(50000×2)/90} = Rs. 1112

In case of salary,
= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(100000×2)/90} = Rs. 2224

In case of other expenses,
= {(Cost × 2 shifts)/ (30days × 3 shifts in a day)} = {(120000×2)/90} = Rs. 2667

So, 
Total overheads,
= Rs. 1667 + Rs. 1112 + Rs. 445 + Rs. 2224 + Rs. 2667
= Rs. 8115

Now, from equation (1), we get,

Dyeing cost per kg,
= {(4700+ 1600+ 0+ 8115)/400}
= Rs. 36.00

After adding 20% profit, dyeing rate stands at 
= {36/ (1-20%)}
= Rs. 45.00