Garment Costing: How to Calculate Garment Cost

1. Fabric consumption: 0.8 yards per garment. 2. Fabric wastage allowance 3% 3. Fabric price: $2.7per yard. 4. Total charges for insurance & fright $ 0.3 (per yard). Fabric is being ordered from Hong Kong. 5. Finance charges for fabric purchasing is 15%. 6. Trim cost: $ 1.5 per garment (excluding thread cost). 7. 5000 meter of thread cones being used for sewing, 210 meters of threads needed for a garment and the price of a thread cone is $6. 8. Garment SMV is 40. 9. Labor rate: the selling price of a minute is $ 0.03

Answer: To calculate the cost of the garment, I will first create a table in excel sheet. Then I will calculate material cost and labor cost. Finally sum up all cost together to calculate total cost of the garment. In the following I have shown you step by step process for calculating cost of the garment using information provided on the above.

Step 1: Arrange information in the excel table, provided on the above problem. See the following table, where I have arranged all required information to find final garment cost. I have given code number to each information A, B, ...J. I added extra rows where I need to calculate something to calculate sub costs and necessary information. Like M, N, O and P.

Fabric cost per garment (including freight and finance charge) = (M*(C+D))+(M*C*E) .Step 2: Calculate total fabric consumption including wastage percentage (M) Total fabric consumption per garment = Calculated fabric consumption (1+Wastage%) Or M=A(1+B) Step 3: Calculate fabric cost per garment (N): Factory has incurred cost in insurance and freight and finance charge. So. I have calculated fabric related cost together.

81 + $1.50 + $0.Step 4: Trim cost: Total cost of the trims has been given. Here thread cost per garment = G*H/5000 Step 6: Calculate labor cost per garment (P): Labor cost per garment is calculated using garment SMV (standard time) and labor cost per minute. Labor cost per garment (P) = Garment SMV * Labor cost per minute Step 7: Calculate total garment cost (GC): I have calculated all sub costs required to find total garment cost.25 + $1.76 . thread cost per garment is calculated. Total garment cost = (Fabric cost + Trim cost + Thread cost + Labor Cost) Total garment cost = ($2. Step 5: Calculate thread cost (O): From the thread rate (unit 5000 meters) and thread consumption.20) = $5.