Finishing Cost Calculation Process in Textile:
To change the fabric appearance, textile finishing process has great importance in textile industry. Finishing cost also included when total cost is calculated. So, to know the actual method of textile finishing cost calculation is mandatory for the responsible person.
You may follow:
1. How to Calculate Apparel Costing for Brief or Shorts?
2. Apparel Costing Sheet Analysis  Apparel Costing Format
3. 13 International Shipping Terms and Conditions in Export Import Business
4. List of Top 100 Garment Buyers in Bangladesh
5. 15 Key Difference Between Knit and Woven Fabric
6. Top 20 Knit Garment Factory in Bangladesh
You may follow:
1. How to Calculate Apparel Costing for Brief or Shorts?
2. Apparel Costing Sheet Analysis  Apparel Costing Format
3. 13 International Shipping Terms and Conditions in Export Import Business
4. List of Top 100 Garment Buyers in Bangladesh
5. 15 Key Difference Between Knit and Woven Fabric
6. Top 20 Knit Garment Factory in Bangladesh
Fig: Textile finishing cost calculation method 
Textile Finishing Cost Calculation Method:
Calculate the finishing cost and rate per of by following the below chart.
SL No.

Parameters

Quantity and Cost

01

Fabric quantity

400kg

02

Finishing chemical consumed

5kg

03

Chemical A consumed

4kg

04

Chemical B consumed

2kg

05

1 day

3 shift

06

Total finishing process time

4 hours

07

Number of labors

3

08

Labor wages

Rs. 200 per shift

09

Compacting

Rs. 8 per kg

10

Steam

Rs. 30000 per month

11

Power

Rs. 10000 per month

12

Transport

Rs. 20000 per month

13

Salary

Rs. 50000 per month

14

Other expenses

Rs. 40000 per month

15

Finishing chemical price

Rs. 250 per kg

16

Chemical A price

Rs. 25 per kg

17

Chemical B price

Rs. 60 per kg

18

Profit

15%

Solution:
To calculate textile finishing cost and finishing rate, below formula has to apply.
Finishing cost per kg,
Direct labor + Direct material + Direct expense + Direct overhead
= …………………………………………………………………....………… .... (1)
Total finishing production
Total Finishing Production Calculation:
Total production,
= Fabric input
= 400kg
Total Finishing Production Time Calculation:
Total finishing production time,
= Finishing process time
= 4 hours
= (4/8) shift
= 0.5 shift
Direct Labor Cost Calculation:
Operator wages,
= Number of labor × No. of shift × labor wage per shift
= 3×0.5× Rs. 200
= Rs. 300
Direct Material Cost Calculation:
Finishing chemical cost = Amount of chemical consumed × chemical price = 5× Rs. 250 = Rs. 1250
Chemical A cost = Amount of chemical consumed × chemical price = 4× Rs. 25 = Rs. 100
Chemical B cost = Amount of chemical consumed × chemical price = 2× Rs. 60 = Rs. 120
So,
Direct material cost is,
= (Rs. 1250 + Rs. 100 + Rs. 120)
= Rs. 1470
Direct Expense Cost Calculation:
Compacting,
= Fabric quantity × compacting rate per kg
= 400 × Rs. 8
= Rs. 3200
Overhead Cost Calculation:
In steam cost calculation,
= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(30000 × 0.5)/90} = Rs. 167
In transport cost calculation,
= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(20000 × 0.5)/90} = Rs. 112
In power cost calculation,
= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(10000 × 0.5)/90} = Rs. 56
In other expenses cost calculation,
= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(40000 × 0.5)/90} = Rs. 224
In salary cost calculation,
= (Cost × 0.5 shift) / (30days × 3 shifts in a day) = {(50000 × 0.5)/90} = Rs. 279
So,
Total overhead cost stands at,
= Rs. 167 + Rs. 112 + Rs. 56 + Rs. 224 + Rs. 279
= Rs. 838
Now, from equation01, we get,
Textile finishing cost per kg,
(Rs. 1470 + Rs. 300 + Rs. 3200 + Rs. 838)
= …………………………………………………………..
400
= Rs. 14.50
After adding 15% profit, textile finishing rate stands at
= {14.50/ (115%)}
= Rs. 17.10