# Apparel Costing

Solution of textile and apparel calculation

## How to Calculate Apparel Checking or Inspection Cost in Clothing Industry?

Estimation of Apparel Checking Cost:
The person who responsible for the apparel checking or inspection cost calculation has to know some key factors of apparel checking cost such as cost of re-checking, transportation, power charges etc. these will definitely help him in apparel checking cost calculation. Fig: Apparel inspection cost calculation process
Apparel Inspection Cost Calculation Method:
Calculate apparel checking or inspection cost and rate by following the given below chart.

 SL No. Parameters Quantity & Cost 01 Order quantity 10000 pcs apparel 02 Checking person (Inspector) 10 03 Inspector wages Rs. 125 per shift 04 Production per shift 2000 pcs apparel 05 1 day 2 shift (1 shift= 8hrs) 06 Re-checking 1000 pcs (Person- 02, Time- 03 shifts) 07 Power Rs. 5000 per month 08 Salary Rs. 20000 per month 09 Rent Rs. 10000 per month 10 Other expenses Rs. 15000 per month 11 Profit 10%

Solution:
The below has needed in apparel checking cost calculation:

Apparel checking cost per apparel,

Direct material cost + Direct labor cost + Direct expense cost + Overhead cost
= …………………………………………………………………….....…...........……......    ...… (1)
Total checking production

Total Checking Production Calculation:

Total production = 10000 pcs apparel

Total Checking Production Time Calculation:

Total production time,
= (Total checking production / Production per shift)
= (10000/2000) shift
= 5 shifts

Direct Material Cost Calculation:

Direct material cost = 0

Direct Labor Cost Calculation:
Operator wage,
= (Number of labor × Number of shifts × operator wage per shift)
= 10×5× Rs. 125
= Rs. 6250

Direct Expense Cost Calculation:

Re-checking labor,
= (No. of labors × No. of shifts × operator wage per shift)
= 2×3× Rs. 125
= Rs. 750

In power cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(50000 × 5)/60} = Rs. 417

In rent cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(10000 × 5)/60} = Rs. 834

In other expenses cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(15000 × 5)/60} = Rs. 1251

In salary cost calculation,
= (Cost × 5 shifts) / (30days × 2 shift in a day) = {(20000 × 5)/60} = Rs. 1667

So,

= Rs. 417 + Rs. 834 + Rs. 1251 + Rs. 1667
= Rs. 4172

Now,
From equation-01, we get,

Apparel checking cost per pc,

(Rs. 0 + Rs. 6250 + Rs. 750 + Rs. 4172)
= …………………………………………………..
10000

= Rs. 1.10

Apparel checking rate stands at
= {1.10/ (1-10%)}
= Rs. 1.25

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