How to Calculate Apparel Costing for Polo Shirt?

Knitted Garments Costing and Consumption in Apparel Sector:
Costing and consumption or apparel export order is the main task for the apparel merchandisers. Both works are not too much tough if apparel merchandiser follows the actual method for those. In another article I have shared an article about How to calculate apparel costing for T-Shirt, but now I have presented here the actual fabric consumption and apparel costing method for knitted polo shirt.


Polo Shirt Costing and Consumption Method in Apparel Industry:
Find out the price of a Polo T-shirt by following the given measurement chart and apparel specifications:
Polo shirt costing method in apparel industry
Fig: Polo shirt costing method in apparel industry
Polo Shirt Specifications
Style of  Polo Shirt
Polo T-shirt with flat knit collar
Fabric
Body - 95% Cotton single jersey and 5% Lycra
Collar – (2×2) Rib, 100% cotton
G.S.M
180 G.S.M for body fabric and 220 for collar
Color
Light green
Print
Print at chest
Size Ratio
S:M:L:XL = (1:1.5:2:0.5)
Quantity of Order
20000 pcs

Solution:
Fabric Consumption Calculation or Apparel Weight Calculation:

To calculate fabric consumption for polo shirt, we will apply the following formula:

Apparel weight calculation or fabric consumption (Single jersey fabric),

    [{T.L + S.L + (2× H.A) + (2 × S.A)} × (1/2 Chest + S.A)] × G.S.M × 2
………………………………………………………………………..........…          … (A)
                                                      10000 

Again,

Flat knit collar weight calculation (Rib fabric),

{Neck round × (Collar width + S.A) × G.S.M}
……………………………………………………          ……….. (B)
                             10000

N.B: Flat knit collar is single layer fabric. So, no need to multiply by 2.

Again,

Flat placket weight calculation (Single jersey fabric),


   {(Placket length + S.A) × (Placket width + S.A) × G.S.M × 3}
………………………………………………………….....………          …….. (C)
                                            10000

N.B: For placket, there is 3 or 4 fold. So, it is multiplied by 3 or 4.

Where,

T.L is stands for Total length,
S.A stands for Seam allowance,
H.A stands for Hem allowance,
S.L stands for Sleeve length.

Fabric consumption calculation for middle size i.e. L Size:

Let,
Seam allowance =2cm,
Hem allowance = 2cm,

So,
From equation-A, we get,

     [{56+26+ (2×2) + (2×2)} × (48+2)] ×180×2
……………………………………………………….
                               10000

= 162gms
= 0.162kg

Again, 
From equation-B, we get,

      {(52 × (8+2) ×220}
……………………………..
               10000

= 11.44gms
= 0.012kg

Again,
From equation- (C), we get,

     {(20+2) × (3+2) × 180 × 3}
…………………………………..
                   10000

= 5.94gms
= 0.006kg

So,
L size fabric consumption (for single jersey) is,
= (0.162+0.006) kg
= 0.168kg

Again,
L size fabric consumption (for 2×2 rib fabric) is 0.012kg

Calculation of Fabric Cost Per Kg:
Parameters
Costing for S/J
Costing for Lycra
Yarn price per kg
Cotton 95% = Rs. 240×95%= Rs. 228
Rs. 268.00
Rs. 190.00
Lycra 5% = Rs. 800×5% = Rs. 40
Knitting rate per kg (S/J Lycra)
Rs. 15.00
Rs. 14.00
Dyeing rate per kg
Rs. 60.00
Rs. 60.00
Printing rate per kg
Rs. 0.00
Rs. 0.00
Compacting rate per kg
Rs. 6.00
Rs. 6.00
Heat setting rate per kg (Synthetic fabric)
Rs. 6.00
Rs. 0.00
Total
Rs. 355.00
Rs. 270.00
Process loss (10%) (+)
Rs. 35.50
Rs. 27.00
Fabric cost per kg
Rs. 390.50
Rs. 297.00




Cost of Fabric Calculation per Pc Apparel: 

Cost of fabric per apparel, 
= (Apparel weight or fabric consumption × Fabric cost per kg) 

For single jersey fabric, 
= 0.168kg × Rs. 390.50 
= Rs. 65.60 

For (2×2) Rib fabric, 
= 0.012kg × Rs. 297.00 
= Rs. 3.56 

Total fabric cost stands at, 
= Rs. 65.60 + Rs. 3.56 
= Rs. 69.16 

Apparel Costing Format for Knitted Polo Shirt: 
The cost of the knitted polo shirt is calculated as in the below:
SL No.
Particulars
Costing
01
Cost of fabric per pc apparel
Rs. 67.30
02
Cost of making cost
Rs. 15.00
03
Chest printing
Rs. 8.00

Trimmings and accessories
Main label
Rs. 0.60
Rs. 5.55
Wash care label
Rs. 0.30
Button
Rs. 1.00
Pouch or Poly bag
Rs. 1.00
Hang tag
Rs. 0.50
Insert card
Rs. 0.80
Barcode sticker
Rs. 0.60
Hologram sticker
Rs.0.75
04
FOB + Packing (Rs. 1 per 30gms of apparel) 180gms/30gms = Rs. 6
Rs. 6.00
05
Sub total
Rs. 101.85
06
Overhead cost (10%) (+)
Rs. 10.20
07
Sub total
Rs. 111.05
08
Rejection cost (3%) (+)
Rs. 3.33
09
Sub total
Rs. 114.38
10
Profit percentage (15%) (+)
Rs. 17.15
11
Sub total
Rs. 131.53
12
Commission of agent
Rs. 0.00
13
Insurance cost
Rs. 0.00
14
Apparel price (FOB) in Rs.
Price in Rs. 131.53
15
Apparel price (FOB) in US ($)
Price in US ($) = $3.0
16
Apparel price (FOB) in Euro.
Price in Euro = E 2.09