SCAP

Assignment 2

Submitted To: Submitted by:

Mr. Neeraj Jaiswal Sir Surmayee Umathe

Ujjawala Jain
 ACKNOWLEDGEMENT

We would like to express my special thanks of gratitude to our

SCAP Teacher “Mr. Neeraj Jaiswal Sir” for their able guidance and
support in completing our project.

We would also like to thank our parents and friends who have
helped us with their valuable suggestions and guidance has been
helpful in various phases of the completion of project.;

Last but not least we would like to thank NIFT for providing us with
all the facility that was required.

Date of Submission: June 04, 2021

Thank You
Costing
To accomplish ideal garment costing, one must be aware of all activities, including fabric
purchases, sewing, packing, transportation, overheads, and so on, as well as their costs,
procedures, benefits, and risk factors. Woven and knitted clothing are the two types of
clothes. Weaving is used to make shirts, trousers, sarees, bedspreads, blankets, towels,
and made-ups. Knitted items include t-shirts, sweaters, underwear, pajamas, and socks.

Simple Classifications
All operations such as purchasing fabrics and accessories, processing and finishing
textiles, sewing and packing clothes, transport and conveyance, shipping, overheads,
banking costs and commissions, and so on are included in the costing. We must be aware
that the costs of raw materials and accessories, as well as the costs of knitting,
processing, finishing, sewing, and packing, as well as the prices of transportation and
conveyance, are always subject to change. Costing is done in a variety of ways, depending
on the style, because there are so many different types of clothing. As an example,
consider the men's basic T-shirt style, which is widely worn. The currency we utilized was
Indian Rupees. To find out the costing of a garment, the following things should things be
calculated:

1. Fabric consumption.
2. Gross weight of other components of the garment.
3. Fabric cost per kg.
4. Fabric cost per garment.
5. Other charges (print, embroidery, etc).
6. Cost of trims (labels, tags, badges, twill tapes, buttons, bows, etc).
7. CMT charges.
8. Cost of accessories (hangers, inner boards, poly bags, cartons, etc).
9. Cost of a garment.
10.Price of a garment.
Consumption of Fabric
The garments manufactured in many sizes to fit for everybody. Generally, they are in
sizes Small (S), Medium (M), Large (L), Extra large (XL) and Double Extra Large (XXL). The
quantity ratio or assortment can be any one of the following approximate ratios.
S: M: L: XL: XXL – 1:2:2:2:1
S: M: L: XL: XXL – 1:2:1:2:1
S: M: L: XL: XXL – 1:2:3:2:2
As the price is the same for all these sizes of garments, let’s take the center size large (L)
for average calculation. Generally, the quantity of L size will be higher or equal to the
quantity of each of other sizes.

Cost Calculation

Cost calculation is the computation of the actual cost of manufacturing. This process is a
detailed calculation of the costs required to manufacture a style based upon available
data. A detailed analysis is made based upon prototypes. This level of costing is important
in determining price values. Production Costing:
Production costing: is related with the actual costs of production but does not take into
consideration the overhead costs and profit margins.
Accounting Costing: Accounting costing is used to make the final adjustments to all
elements of costing and pricing processes.
Unit Cost of Garment
Costs in businesses should be classified and searched according to certain categories in
order to produce a highly effective cost system. The following titles and subcategories
can be used to classify the major expense categories in garment companies:

• Assignment to a cost object - Direct costs / Indirect costs

• Behavior pattern in relation to changes in the level of activity or volume - Variable
costs / Fixed costs
• Components (elements) - Material costs / Labor costs / Overhead costs
• Business Function - Administration costs / Sales costs / Purchasing costs /
Production costs
• Aggregate or average - Total costs / Unit costs
• Assets or expenses - Inventor able costs / Period costs

Each component (element) of a garment should be properly described in order to

calculate the unit cost of goods. All costs associated with the production of a clothing
item are included in the unit cost of goods. Material costs, labor costs, and overhead
expenses are the three elements that make up the cost of goods.

MATERIAL COST:
Fabric and accessory costs are included in the material expenses. In most garment styles,
the most expensive material is fabric. According to statistics, the fabric makes up 45
percent of a garment. Because fabric is the most important aspect in determining the
cost of a garment, a correct estimation of the amount of fabric required per garment is
critical. Fabric expenditure is determined in two steps. First and foremost, the price of a
unit of fabric is established. As a result, the fabric expenditure per unit garment is
calculated. Marker plans are created using the size scale and fabric width to correctly
predict the average amount of fabric required for a garment type. The overall cost of the
fabric is determined by multiplying the expenditure value by the price per square meter
after assessing the fabric consumption required to construct a style, including a waste
factor. Quantities per garment are measured in units, sets, or meters for all other direct
materials such as trim, thread, buttons, zippers, labels, shoulder pads, and poly bags.
Waste factors are also calculated to accommodate materials that are dropped, broken or
damaged during the manufacturing process.

LABOR COST:
The costs of changing the condition or appearance of raw materials are included in labor
costs. Cutting, bundling, folding, stitching, and finishing are examples of direct labor
functions. Sewing is the most expensive technique, and it accounts for a considerable
amount of the entire cost of clothes. Each individual operation in the garment's
manufacture should be outlined, and the overall time of sewing processes should be
properly calculated.

OVERHEAD COST:
All costs besides material and labor are included in overhead costs. Overhead costs
include manufacturing overhead, as well as general and administrative expenses. This
category includes expenses such as marketing and selling, merchandising, design or
product development, and distribution.
 Costing Of Basic Shirt
Fabric Consumption Calculation

Back Part

30.5”” (Body Length) X 27.5” (1/2 Chest) / 36”X 44” (Fabric Wirth) 0.529 YDS
26” (Yoke Length) X 7” (Yoke Width) X 2 (Double Part) / 36” X 44” 0.229 YDS
32” (Body Length) X 16.5” (1/2 Chest) X 2 (Double Part / 36” X 44” 0.666 YDS

Front Part

32” (Body Length) X 16.5” (1/2 Chest) X 2 (Double Part) / 36” X 44” 0.666 YDS

Sleeve

23.5” (Sleeve Length) X 25” (Arm Hole) X 2 (Double Part) 36” X 44” 0.741YDS
12” (Cuff Length) X 3” (Cuff Width) X 4 (2 X2 Parts) / 36” X 44” 0.99 YDS

Collar

21.5” (Collar Band Length) X 2” (Band Width) X 2 ( Double Part) / 36” X 44”
0.067 YDS
21.5” (Collar Band Length) X 2” ( Band Width) X 2 ( Double) / 36” X 44” 0.054
YDS

Pocket

8” (Pocket Length) X 6” (Pocket Width) / 36” X 44” 0.03 YDS Total Fabric
Consumption 2.406 YDS

TOTAL FABRIC CONSUMPTION OF SHIRT (IN METERS) = 2.2 METERS

ASSUMPTIONS:

 Woven fabric – 100% cotton is used

 Size of shirt = 40 inch
 Formal shirt with full sleeves - Profit is 20%.
 Waste = 3%
 Administrative overheads = 8%
 Factory Overheads = 5%
 Sales and Production Overheads = 7%
 COST SHEET

Direct Material
S.No. Description Unit of Cost Consumption/ Cost/piece
Measurement piece
FABRIC
1 100% cotton meters 100 2.2 220

TRIMS
2 Fusing material 5 1 5

3 Brand and pieces 1.5 1 1.5

Size Label

4 Care and pieces 1.5 1 1.5

Code Label

5 Threads spool 4 1 4

6 Buttons unit 0.25 12 3

TOTAL 235
 Direct Wages

Estimated
S.No Operation Skill Matrix Cost/ unit Cost/piece
SAM
1 Inspection 0.1 skilled 3.5 0.35

Spreading and
2 0.2 skilled 3.5 0.7
Marking

3 Cutting 0.1 skilled 3.5 0.35

4 Sewing 22.3 skilled 3.5 78.05

5 Finishing 0.5 Semi - skilled 3.5 1.75

TOTAL 81.2

Direct Expenses
Unit of Consumption/
S.No. Description Cost Cost/piece
Measurement piece

1 Carton Box piece 3 0.1 0.3

2 Poly Bag 0.6 1 0.6

3 Hand Bag pieces 0.4 1 0.4

Packaging Labor
4 SAM 8 0.1 0.8
Cost

TOTAL 2.1
 COST SHEET

Product Men’s Formal Shirt Mono Color

Style Number XY6789 Country India

Buyer Siyaram’s Fabric 100% cotton

Width 42”
Particulars Details Cost (Rs)

Direct Material 235

Direct Wages 81.2

Direct Expenses 2.1
PRIME COST 318.3

Factory Overheads 15.9

TOTAL FACTORY COST 334.2

Office and Administrative Overheads 26.7

COST OF PRODUCTION 360.9

Sales and Production Overheads 25.2

Waste 10.8
COST OF SALES 396.9

Profit 79.4

Total Cost/ Piece 476.2

Total Cost of Shirt = Rs. 476.2

Why costing is important?

A garment's costing is a critical component. A cost sheet assists a manufacturer in

understanding all of the costs associated with the production of a particular garment. It
finally aids in the reduction of production costs and the increase of profit. Costing should
be done at the very beginning of the product development process. It must be carried out
properly and in compliance with the target market's requirements. The success of a
brand is determined by how well its product is priced. The cost sheet for a basic shirt
stated above details all of the costs involved in producing a men's basic formal shirt. The
cost sheet may differ from one industry to the next, but the details are always the same.