Knit Fabric Cost and Knitting Cost Calculation in Textile:
Knitting cost calculation is too much important to achieve greater output in textile business. It is not an easy task that we have normally seemed. This article will help you to learn the exact calculating method for knit fabric cost and knitting rate calculation.
Knitting cost calculation method in textile 
Knitting Cost Calculation Method in Textile Sector:
Find out the knitting cost & rate and knitted fabric cost & price from the below chart.
Parameters

Amount or
Quantity

Total machine

2

Shift per day

3

Production capacity
per shift

70kg per machine

Yarn used

1000kgs

Yarn price

Rs. 200 per kg

Knitting wastage

2%

Operator wages

Rs. 200 per shift

Helper wages (In
production)

Rs. 100 per shift

Inspection wages

Rs. 200 per shift

1 helper

2 machines

1 operator

1 machine

Inspection worker

1 person

Power

Rs. 4000 per month

Rent

Rs. 8000 per month

Transport

Rs. 6000 per month

Salary

Rs. 25000 per month

Other expenses

Rs. 24000 per month

Profit

10%

Solution:
To calculate the knitting cost and rate we have to follow the below knitting cost calculation formulas:
1. Fabric Manufacturing and Selling Cost Calculation:
Knit fabric cost/kg,
Direct material (D.M) + Direct labor (D.L) + Direct expenses (D.E) + Overhead (OH)
= ……………………………........…………………………………….....……...................… ….(1)
Total production
2. Knit Fabric Manufacturing Cost calculation:
Knitting cost/kg,
Direct labor (D.L) + Direct expenses (D.E) + Overhead (OH)
= ………………………...…………………………………………...…… ………….. (2)
Total production
Total Production Calculation:
Total production,
= Yarn used –wastage%
= 10002%
= 100020
= 980kg
Total Production Time Calculation:
Total production time = Total production/production capacity per shift …………………… (3)
Now,
Production capacity/shift,
= No. of machines × capacity
= 2×70
= 140kg
Now, from equation (3), we get,
Total production time,
= 980/140
= 7 shift
Direct Material (D.M) Cost calculation:
Yarn cost,
= 1000 × Rs. 200
= Rs. 200000
Direct Labor (D.L) Cost calculation:
Operator wage = No. of operator × No. of shifts × Rs. 200 = 2×7×200 = Rs. 2800
Helper wage = No. of helper × No. of shifts × Rs. 100 = 1×7×100 = Rs. 700
Inspection wage = No. of inspector × No. of shifts × Rs. 100 = 1×7×200 = Rs. 1400
So,
Direct labor (D.B) cost,
= Rs. 2800+ Rs. 700+ Rs. 1400
= Rs. 4900
Direct Expense (D.E) Cost Calculation:
Direct expense = 0
Overhead (OH) Cost Calculation:
In case of power,
= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(4000×7)/90} = Rs. 311
In case of rent,
= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(8000×7)/90} = Rs. 622
In case of transport,
= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(6000×7)/90} = Rs. 467
In case of salary,
= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(25000×7)/90} = Rs. 1944
In case of others expense,
= (Cost × 7 shifts)/ (30days× 3 shifts in a day) = {(24000×7)/90} = Rs. 1867
So,
Total overheads,
= Rs. 311+ Rs. 622+ Rs. 467+ Rs. 1944+ Rs. 1867
= Rs. 5211
Now, from equation (1), we get,
Knit fabric cost/kg,
= {(200000+4900+0+5211/980)} = Rs. 214.40
After adding 10% profit, knit fabric cost stands at,
= {214.40/ (110%)}
= Rs. 238.20
Again,
From equation (2), we get,
Knitting rate or knitting cost per kg,
= {(4900+0+5211)/980}
= Rs. 10.30
After adding 10% profit, knitting rate stands at,
= {10.30/ (110%)}
= Rs. 11.45