Apparel Costing

How to Calculate Apparel Costing for T-Shirt?

Knit Garments Costing and Consumption in Apparel Sector:
Fabric consumption and costing is one of the most important tasks for the apparel merchandisers. To get higher profit percentage from an apparel export order, merchandiser should have calculated the total costing and consumption by applying accurate fabric consumption calculation formula.

T-Shirt Costing and Consumption Method in Apparel Industry:
Calculate the price of a round neck T-shirt in from the given measurement chart and apparel specifications:
 Apparel Specifications Style of T-Shirt Round neck T-shirt Fabric Body - 100% cotton single jersey Collar – Self fabric G.S.M 180 Color Red Embroidery Embroidery logo at chest Size Ratio S:M:L:XL = (1:1.5:2:0.5) Order Quantity 10000 pcs

 Fig: Apparel costing for T-Shirt in apparel industry
Solution:

Fabric Consumption Calculation or Apparel Weight Calculation Formula:
We have to follow the below formula during fabric consumption for the apparel. You may follow How to calculate fabric consumption for T-shirt.

Apparel weight calculation,

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

And,

Round neck collar weight calculation,

{(Neck round + S.A) × (Collar width + S.A) × G.S.M × 2}
………………………………………..………………...........……                …….. (2)
10000

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.

Apparel weight calculation for middle size i.e. L Size:

Let,
Seam allowance =1cm,
Hem allowance = 2cm,

So,
From equation-01, we get,

[{60+23+ (2×2) + (2×1)} × (50+1)] ×180×2
……………………………………………………..
10000

= 166.60 gms
= 0.167kg

Again,

From equation-02, we get,

{(52+1) × (3+1) ×180×2}
………………………………..
10000

= 7.8gms
= 0.08kg

So,

L size apparel weight stands at,
= (0.167+0.08) kg
= 0.175kg

Fabric Cost Calculation Per Kg:

 SL No. Particulars Amount 01 Yarn price per kg Rs. 240.00 02 Knitting rate per kg Rs. 8.00 03 Dyeing rate per kg Rs. 70.00 04 Printing rate per kg Rs. 0.00 05 Compacting rate per kg Rs. 6.00 06 Heat setting rate per kg (Synthetic fabric) Rs. 0.00 07 Total Rs. 324.00 08 Process loss (8-10%) (+) Rs. 32.40 (+) 09 Fabric cost per kg Rs. 356.00

Fabric Cost Calculation per Pc Apparel:

Fabric cost per apparel,
= (Apparel weight × Fabric cost per kg)
= (0.175 × Rs. 356.40)
= Rs. 62.37

Apparel Costing Format for T-Shirt:
The cost of the apparel is calculated as follows:
 SL No. Particulars Amount 01 Fabric cost per apparel Rs. 62.37 02 CMT cost Rs. 10.00 03 Special operations Rs. 4.00 Rs. 4.00 04 Accessories and trimmings Main label Rs. 0.60 Rs. 4.55 Wash care label Rs. 0.30 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 05 FOB + Packing Rs. 6.00 06 Sub total Rs. 86.92 07 Overhead (10%) (+) Rs. 8.70 08 Sub total Rs. 95.62 09 Rejection (3%) (+) Rs. 2.87 10 Sub total Rs. 98.49 11 Profit (15%) (+) Rs. 14.78 12 Sub total Rs. 113.27 13 Agent’s commission Rs. 5.67 14 Insurance Rs. 1.13 15 Apparel price (FOB) in Rs. Price in Rs. 120.07 16 Apparel price (FOB) in US (\$) Price in US (\$) = \$2.72 17 Apparel price (FOB) in Euro. Price in Euro = E 1.91