Garment Costing:

For garments costing a merchandiser needs to have clear conception on some important terms.They are-

1. Fabric Consumption
2. Fabric Cost
3. Accessories Cost
4. Print/Embroidery/Washing Charge
5. C.M.
6. Freight (C & F)
7. Payment mode (at sight deferred payment 60days or 90 days or 120 days, TT, Sales Contract) 

Example of garment costing calculation:

The calculation of garment costing is given by assuming the following dimensions for polo neck T-shirt, 
 No. of pieces = 4000,
 Salary of the operator =6240 tk/month=80$/month,
 No. of working days = 26,
 Line efficiency considered= 50%,
 Sewing SAM= 15 min.,
 Cutting SAM= 7 min. 1$ =78 taka
 Chest = 60 cm,
 Length (HSP to waist) = 75 cm,
 Sleeve length = 25 cm
 Fabric used is 2/60s 100% cotton S/J fabric.
 GSM is 180

Solution 
The fabric consumption can be calculated as 

= [{(B.L +S.L + 4-10 cm) ×( ½ chest+ 2-4 cm) ×2}×GSM ] / 10000000 

= [{(75+25 + 4) ×( 60+ 2) ×2}×180 ] / 10000000 
= 0.232 + Wastage 10% [if consider 10% wastage] 
= 0.255 kg/dozen 

CMT (cost of making with trimming) charges may be calculated as follows 

Labour cost per minute = (Monthly salary of an operators/Total minutes available in the month 

= 6240/ (26×8×60) 
= 0.5 tk. 

Sewing cost = (SAM of the garment * Minute cost of the labour) / Line eff% 
= 15*0.5 / 50% 
= 15 tk. 

Cutting cost = (SAM of cutting * Minute cost of the labour) / cutting efficiency (%) 

= 7*0.5 / 50% 
= 7 tk. 

Now trimming cost is considered as 3 tk. but it depends how number of operators are there for
trimming .

CMT = sewing cost + cutting cost + trimming 

= 15+ 7+ 3 
= 25 tk.