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.

Apparel inspection cost calculation process
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

Overhead Cost Calculation:

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,

Total overhead cost stands at,
= 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

After adding 10% profit,

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


You may follow:
1. How to Calculate Apparel Costing for Brief or Shorts?
2. How to Calculate Apparel Costing for T-Shirt?
3. 4 Steps of Apparel Costing in Clothing Manufacturing Factory
4. How to Calculate Apparel Costing for Boxer Shorts? 
5. How Textile and Apparel Waste Produced in Manufacturing Factory? 
6. List of Top 10 Textile Companies in World
7. Top 50 Garments Buying Houses in Bangladesh
8. 7 Factors to Consider After Receiving Apparel Export Order
8. What is Shipment | International Shipping Process Flow Chart
9. 7 Key Principles of Apparel Costing
10. Apparel Cost Calculation Method for Export Order 
11. Top 20 Knit Garment Factory in Bangladesh