Shoe Costing Guide

DEPARTMENT FOOTWEAR
SUB DEPARTMENT-
COURSE -B.Des. (Footwear Technology)

Course Code: B. Des.(FDPM)
SUBJECT HEAD Product Costing
SUBJECT CODE FDDI/ BFDTM602
UNIT TITLE
SLB CODE
SLB SUB CODE ( IF APPLICABLE)
STUDENT LEARNING BOOKLET(SLB)

SLB Sr. No. - ____ OF ______
UNIT1: Basic Cost Concepts and Management (Footwear)
Footwear Design & Development Institute

Ministry of Commerce & Industry, GoI
A-10/A, Sector-24, NOIDA 201301
FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 1

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Instruction Sheet Self-learning guide (Full shoe costing)
This learning guide for full shoe costing is developed to provide you the necessary
information regarding the following content coverage and topics –
 Definition of costing
 Objective of costing
 Elements of cost
 Various shoe materials and brief information about their consumption calculation
 Full shoe costing process
 Making of BOM for a shoe
 Making of Costing Sheet for a shoe
 Numerical Problems with solved example
 Unsolved Numerical Problems for practice
This learning guide will help you –

1. To understand about various shoe materials and their consumption calculation
methods
2. To understand about UOM ( unit of measurements) for different materials in a shoe
3. To understand about How to make a bill of material format
4. To understand about Full shoe costing procedure and how to prepare a costing sheet
format for a shoe

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Information Sheet-1 Introduction about Indian Shoe Industry
.
About Indian shoe Industry:
Indian Footwear Industry is one of the most vital industry, which rather than machinery, also
depends on craftsmanship and manpower.
Footwear Export is among top ten Export products of the country China is the largest
manufacturer of Footwear, but we are ahead of it in good craftsmanship.
Being a second Largest Footwear manufacturer of the world, Indian Footwear Industry is
divided in three sectorslarge,medium& small scale.
Men’s footwear comprises 55 percent of the entire industry in India thus making it the
dominant segment. The footwear for kids makes up 15 percent and that for ladies accounts
for the remaining 30 percent.
Majority of the top shoe brands in India are overseas entities like Reebok, Nike, and Adidas
Puma etc.
But other Indian brands like Bata, Liberty, Woodland, Metro shoes, Lotto, Red Tape,
Lakhani, Relaxo Reliance Footprintsetc.are also very much popular among the Indian
Market.
They are increasing their presence across the country.As lower or middle class group is
looking for good quality shoes in economical price.
Major footwear manufacturing centers in India in various regions:
North: Agra, Kanpur, Jalandhar, Haridwar, Dehradoon, Chandigarh, Delhi NCR. Etc.
South: Chennai, Ambur, Ranipet etc.
East: Kolkata, Patna etc.
West: Mumbai, Surat etc.
The leading shoe manufacturers in India are:
1. Bata India Limited

2. Liberty group
3. Farida group
4. Mirza group
5. Super House group
6. Tirubala International
7. Rehman group
8. Tej group

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9. Prachi leathers
10. Drish shoes
11. Lotus bawa
Indian shoe companies are producing their products either for Export market, Domestic
market or both.
Reputed global brands like Gabor, Geox, Clarks, Nike, Reebok, Eram, Ecco, Deichmann,
Elefanten, Bevaform, Hasley, Salamander and Colehaan are manufactured under license in
India. Besides, many global retail chains seeking quality products at competitive prices are
actively sourcing footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the sandals and
chappals are produced in the household and cottage sector. The industry is poised for
adopting the modern and state-of-the-art technology to suit the exacting international
requirements and standards. India produces more of gent’s footwear while the world’s major
production is in ladies footwear. In the case of chapels and sandals, use of non-leather
material is prevalent in the domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes,
hierarchies, sandals, ballerinas, boots. Non-leather footwear exported from India areShoes,
Sandals and Chapels made of PU, TPR, P.V.C., EVA and other materials.
With changing lifestyles and increasing affluence, domestic demand for footwear is projected
to grow at a faster rate than has been seen.
The footwear sector has matured from the level of manual footwear manufacturing methods
to automated footwear manufacturing systems. Many units are equipped with In-house
Design Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packages
that are intuitive and easy to use. Many Indian footwear factories have also acquired the ISO
9000, ISO 14000 as well as the SA 8000 certifications. Excellent facilities for Physical and
Chemical testing exist with the laboratories having tie-ups with leading international agencies
like SATRA, UK and PFI, Germany.
Strength of India in the footwear sector originates from its command on reliable supply of
resources in the form of raw hides and skins, quality finished leather, large installed
capacities for production of finished leather & footwear, large human capital with expertise
and technology base, skilled manpower and relatively low cost labor, proven strength to
produce footwear for global brand leaders and acquired technology competence, particularly
for mid and high priced footwear segments. Resource strength of India in the form of
materials and skilled manpower is a comparative advantage for the country.
About Top shoe brands in India
 Bata
 Liberty
 Relaxo
 Lakhani

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 Reliance Footprint
 Woodland
 Red Tape
 Reebok
 Nike
 Adidas
 Puma
 Lotto
 Valentino
 Lancer
 Action
 Fila
 Catwalk
Today’s time there is a huge competition to get export orders among the shoe
companies in India. Any good customer once visit in India they always look for not
only the best infrastructure, good market reputation also best quality shoes in most
economical price.
So accurate costing becomes very important in Export business. As a small difference

in shoe pricing may create opportunity for other companies.
So all shoes companies have become very keen to focus on accurate costing.

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Information Sheet-1 Basic Cost Concepts and Management (Footwear)
Introduction:
 The profitability of the shoe company depends on accurate costing.
 In any factory, the cost of the products manufactured is calculated, so that the exact
idea about of profit can be made.
 We know that there are a lot of items are of expenditure, which are made in the
factory and all these are changed on the product manufactured.
 No item of expenditure should be left, while calculating the total cost of any product.
 If we consider about inventory, it is real fact that “20% of the items account for
80% of total inventory investment.”
 So, if we consider about any leather shoe then major item becomes upper leather,
which is responsible for 65%-70% price of the shoe.
 The other items are account for only 30%-35% of the shoe.
So importance of upper item becomes more in compare to remaining items
Cost:
“An amount that has to be paid or given up in order to get something.”
Or
‘Cost’ may be defined as “An amount that has to be paid or spent to buy or obtain something.”
Or
“Cost denotes the amount of money that a company spends on the production of goods or
services.”
Costing:
Costing is the classifying, recording, and appropriate allocation of expenditure for the
determination of cost of products or services and for the presentation of suitably arranged
data for purpose of control and guidance of Management.
Objectives of Costing:
The major five objectives of costing are
 To Ascertainment the cost per unit of production.
 To determine of the selling price.
 To help in cost control and cost reduction.
 To Ascertaining the profit of each activity.
 To assist the management in decision making.

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Also helps in
 Finding the bottlenecks in production.
 To help in finding about inefficiency of any department.
 To help in reduce the rejection rate during the production.
 To help in monitor the workers performance.
 To control the inventory.
 To estimate how much material is required to be order.
 To calculate cost and profitability for any organization.
Elements of cost:
It can be classified in three major elements as below mentioned:
• Material
• Labour
• Expenses
• Overheads
Components of Total Cost
Direct material
Factory costs
DIRECT
Prime
costs
Direct wages
NET SELLING PRICE
TOTAL COSTS
Direct expenses
Factory overheads
INDIRECT
Administrative overheads
Selling overheads
Distribution overheads
Prime Costs:
It consists costs of
• Prime cost= (Direct material+ Direct labour +Direct Expenses)
• Prime cost is also called “Direct Cost”.

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Factory Cost: It consists costs of
• Factory cost= (Prime costs + factory overheads)
• Factory cost is also named as “Works Cost”
Total costs: It consists costs of
• Total costs = ( Factory costs + Administrative overheads + Selling expenses +

Distribution expenses)
Net Selling Price: It consists costs of
• Net Selling Price =(Total Costs + Profit or loss)
The substance from which the product is made is known as material.
It may be direct as well as indirect.
Direct material:
All materials which become an integral part of the finish product.
These are those materials which when operated or processed in the factory shops through
various stages from the final useful shape of the main product or component part of the main
product.
Some examples of direct materials are

a. All materials or components specially purchased, produced or requisitioned from
stores.
(e.g. leather, sole, insole, thread, eyelets, reinforcements, adhesives, finishing
cream/waxes, laces etc.)
b. Primary Packing material (e.g. cartoon, shoe boxes, wrapping paper, labels etc.)
c. Purchased or partly produced components.
(e.g. moulded socks, moulded insole etc.)
Indirect material costs:
These are those materials which are essentially needed in various shops for helping the direct
materials to be converted into the final useful shapes.
e. g. Hydraulic oil
Machine Lubricants
Printing items
Stationary items.

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Indirect material may be used in factory, the office or in the selling and distribution
divisions
Labour cost:
For conversion of materials into finished goods, human effort is needed such human effort is
called labour.
Labour can be direct or indirect.
Direct Labour:
The workers who are actually work and process the different materials manually or
with the aid of machines are known as ‘direct labour’.
Labour which takes an active and direct part in the production for a particular product.
e.g.
 Machine operators
(For swing arm clicking press, stamping machine, crimping machine, skiving machine etc.)
 Machine operators
(For stitching machine, folding machine etc.)
Indirect Labour:
Labour which does not takes an active and direct part in the production for a particular
product.
For e.g.
• Wages of store keepers
• Wages of supervisors
• Wages of quality inspectors
• Wages of directors
• Wages of office employees
• Wages of salesman
• Wages of security guards etc.
Expenses:
Except direct materials cost and direct labour cost, all other expenditures are called
“Expenses”.
Cost of indirect material and indirect labour is also included in expenses.
e.g.
• Cost of advertisement
• Building rent
• Depreciation charges of plant and factory building
• Cost of packing
• Cost of transportation
• Salaries and commission to salesman etc.
Expenses may be direct or indirect.

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Direct Expenses:
These are the expenses which can be charged directly to a particular job and incurred for the
specific job only.
e.g.
• Cost of special tools
• Special machines taken on lease etc.
Indirect Expenses:
These are also known as overhead charges.
These can be classified as
a) Factory Expenses
b) Administrative Expenses
c) Selling Expenses
d) Distribution Expenses
Factory Expenses: These overheads include all the expenditures made on actual operation of
a product in the plant such as indirect material and indirect labour.
Administrative or Office Expenses: These overheads include all the expenditure made on
the salaries of general office staff depreciation of office building and equipments etc.
Selling Expenses: These overheads include all the expenditure made on the salaries of
persons working on sales department, advertising expenses, agency expenses etc.
Distribution Expenses: These overheads include all the expenses made on holding finished
stock, dispatching them to the customer, packing cost etc.
Fixed and Variable Overheads:
All the overheads can be classified into following two forms:
i. Fixed overheads
ii. Variable overheads
i) Fixed overheads:
These are those indirect expenses, which remain constant whatever may be the volume of
production.
e.g.
• Salaries of staff
• Depreciation of machines and equipment
• Interest on capital interest

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• Rent of building
• Insurance of building etc.
ii) Variable overheads:

These are those indirect expenses, which vary with the volume of production.
e.g.
• Power of fuel consumed
• Consumable store supplies
• Repairs and maintenance

• Expenses of tools

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Full Shoe Costing process:
1. Take the correct sample shoe from the concern merchandiser for which you want to
go for costing.
2. Write down the following details before start of full shoe costing:
a. Customer Name
b. Order no. Article number/Style Name
c. Sample size
d. Size assortment
e. Average size
f. Mould
g. Last no.
h. Season
i. Date
j. Sample picture ( Take out side view)
3. Make a list of all material used as per various departments like

a. Cutting,
b. Closing,
c. Lasting,
d. Finishing & Packing
4. Calculate per pair consumption with measuring units and price per unit of each
material and write them in front of respective materials.
5. The sheet containing list of all materials with per pair consumption with unit of
measurements is called BOM (Bill of material)for a particular shoe.
6. Now write down per unit cost in front of respective columns.
7. Calculate Direct cost (Prime cost)=(Direct material+ Direct labour +Direct Expenses)
i.e. Calculate Material Cost+ Labour cost +Tooling cost+ Machine cost per unit for
each department.
8. Calculate Works Cost(Factory cost)= (Prime costs + factory overheads)
9. Now Calculate Total costs= (Factory costs+ +Administrative overheads+ Selling

overheads + Distribution overheads)
10. Finally calculate Net selling price by adding profit in total costs.
i.e. Net Selling Price =(Total Costs + Profit or loss)

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The above sheet is known as “Costing Sheet” for a particular shoe.
This is one of most important document kept under a responsible person that is called
‘Costing Manager’.
“Costing sheet “should be kept in a confidential form. It should not be shown to any outside
person.
It is being made for price negotiation with any buyer or a customer (Actually a shoe
company gets any orders that are being finalized after price negotiation).
It should be kept as a permanent record. This record can help during repeat orders.
Bill of materials or BOM:
Bill of materials is the record of the materials used to construct a product.
It can include raw materials, sub-assemblies and supplies.
A bill of materials may include the unit quantity required to construct the finished product.
The bill of materials is used to calculate the cost of a product, as well as to order parts from
suppliers.
 This bill of materials can be kept as a record for a particular article.

 This can be used for repeat orders.
 It can help during price negotiation during repeat orders.
 The copy of BOM is circulated This is one of the most important document in any
shoe factory which helps in
Material issue in various departments for a particular order.
One example of BOM has shown in next page.

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BILL OF MATERIAL
COMPANY'S NAME STAR INTERNATIONAL
CUSTOMER KERRY , BELGIUM
ARTICLE NO. A-9910
MOULD M-2727
LAST L-1000880
DATE 3/7/2015
SAMPLE SIZE 7
AVERAGE SIZE 9
TOTAL ORDER 20,000 PAIRS
SIZE (S) 6 7 8 9 10 11 12 TOTAL
PAIRS (n) 2000 2000 4000 4000 4000 2000 2000 20000
∑Sn 180000 Average size ∑Sn/n = 9.00
EXTRA PAIRS
MATERIAL SPECIFICATION COLOR CONSUM. UNIT PRICE REQUIRED QTY SUPPLIER UOM PAIRS
1%
A.CUTTING
UPPER COW BURNISH ( 1.2 - 1.4 MM) BROWN 18.40 15.00 371680.00 K.K. TANNERS SDM 200 20200
VAMP LINING SKIN FIT WITH 3MM FOAM BROWN 0.045 80 909.00 JASCH SQM 200 20200
QUARTER+TOUNGE LINING COW DD (0.7-0.9 mm) TAN 12.40 7.50 250480.00 CHAWALA TANNERY SDM 200 20200
HEEL GRIP SPLIT SUEDE TAN 3.12 5.50 63024.00 INDIAN SDM 200 20200
INTERLINING 0.5 MM EVA CAOTED OFF WHITE 0.089 130 1797.80 NAVKAR SQM 200 20200
IN- SOCK COW DD (0.7-0.9 mm) TAN 6.6 7.50 133320.00 CHAWALA TANNERY SDM 200 20200
SOCK CUSION EVA 3MM WHITE 0.065 150 1313.00 NAVKAR SQM 200 20200
QUARTER + TONGUE FOAM 5 MM 40 D GREY 0.115 125 2323.00 RICHA SQM 200 20200
TOE PUFF T. P. (0.9 MM) YELLOW 0.025 220 505.00 TECNO GI SQM 200 20200
STIFFNER T. P. (1.1 - 1.2 MM) YELLOW 0.058 225 1171.60 TECNO GI SQM 200 20200
B.CLOSING
THREAD UPPER 1 NYLON TKT 40 (904) 3 PLY DARK BROWN 12.75 0.80 257550.00 THREAD INDIA MTR 200 20200
THREAD UPPER 2 NYLON TKT 20 (904) 6 PLY DARK BROWN 1.68 0.90 33936.00 THREAD INDIA MTR 200 20200
THREAD LINING NYLON TKT 40 (904) 3 PLY TAN 11.50 0.80 232300.00 THREAD INDIA MTR 200 20200
EYELET TAPE FELT 20 MM GREY 0.26 7.50 5252.00 S.K ENTERPRISES MTR 200 20200
NEEDLE 1 LR 21 SILVER 202.00 GEORGE PCS 200 20200
NEEDLE 2 LR 14 SILVER 202.00 GEORGE PCS 200 20200
NYLON TAPE 5 MM BLACK 0.54 1.50 10908.00 S.K ENTERPRISES MTR 200 20200
ADHESIVE LATEX WHITE 15 0.04 303000.00 S.S ENTERPRISES GRAM 200 20200
C. LASTING
SOLE PU DARK BROWN 1 100 20200.00 ALERT PRS 200 20200
INSOLE CONTINENTAL PINK 1 15 20200.00 S.K ENTERPRISES PRS 200 20200
FILLER 2 MM EVA WHITE 0.0066 120 133.32 NAVKAR SQM 200 20200
ADHESIVE 1 (TOE LASTING) HOT MELT ADHESIVE, POLYSTER WHITE 12 0.96 242400.00 JINDAL PLASTIC GRAM 200 20200
ADHESIVE 1 (SEAT & SIDE LASTING) HOT MELT ADHESIVE, POLYAMIDE YELLOW 15 1.12 303000.00 JINDAL PLASTIC GRAM 200 20200
D. FINISHING
TOP CREAM TOP SHINER BROWN 10 0.40 202000.00 STAWL GRAM 200 20200
WAX 1 FOR CUTTING (COTTON BRUSH) BROWN 12 0.40 242400.00 STAWL GRAM 200 20200
WAX 2 FOR POLISHING (WOOLEN BRUSH) NATURAL 8 0.30 161600.00 STAWL GRAM 200 20200
TISSUE PAPER 1 (2 FOR STUFFING) STANDARD SIZE WHITE 2 0.25 40400.00 ROYAL PACKAGING PCS 200 20200
TISSUE PAPER 2 (2 FOR WRAPING) STANDARD SIZE/BATA PRINTED WHITE 2 0.60 40400.00 ROYAL PACKAGING PCS 200 20200
HANGTAG AS PER DETAIL AS PER DETAIL 1 1.00 20200.00 ROYAL PACKAGING PCS 200 20200
PICTOGRAM L/L/O AS PER DETAIL 1 0.25 20200.00 ROYAL PACKAGING PCS 200 20200
LEAFLET AS PER DETAIL AS PER DETAIL 1 1.25 20200.00 ROYAL PACKAGING PCS 200 20200
BARCODE AS PER DETAIL AS PER DETAIL 1 0.25 20200.00 ROYAL PACKAGING PCS 200 20200
LACES COTTON ROUND WAXY 85 CM DARK BROWN 2 6 40400.00 INDIA LACE PCS 200 20200
SHOE BOX AS PER DETAIL AS PER DETAIL 1 20.00 20200.00 ROYAL PACKAGING PCS 200 20200
SHOE BOX LABEL AS PER DETAIL AS PER DETAIL 1 0.60 20200.00 ROYAL PACKAGING PCS 200 20200
STRING 9 CM STANDARD 1 0.15 20200.00 S.R PRINTERS PCS 200 20200
MICRO -PAK STANDARD LIGHT GREEN 1 0.70 20200.00 ANNA PACKAGING PCS 200 20200
OUTER CARTON
OUTER CARTON LABEL 1 - FRONT 7 PLY (10 PAIRS - SOLID) BROWN 65.00 2020.00 ROYAL PACKAGING PAIR 200 20200
MARK AS PER DETAIL AS PER DETAIL 1 3.00 2020.00 ROYAL PACKAGING PAIR 200 20200
OUTER CARTON LABEL 2 - SIDE MARK AS PER DETAIL AS PER DETAIL 1 1.00 2020.00 ROYAL PACKAGING PAIR 200 20200
CARTON TAPE PRINTED ( FOR 2020 CARTONS) WHITE 5 m/ carton 50.00 404 rolls ROYAL PACKAGING ROLLS 200 20200

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Costing methods of leather shoes materials :
1. Materials related to Cutting Department:
a. Upper and lining leather: There may be any type of upper leather can be used as
per the requirement of the shoe.
It is very important for a Costing Manager to know about shoe constructions

&knowledge about thickness of upper lining for various shoe segments like
gents, ladies & kids.
There are following methods are available for upper & lining leathers (including
leather socks) as below mentioned:
 Graphical Method ( Block Method )
 Marking Up ( Tracing Method)
 R.S.M. ( Russ & Small Method)
 Table R.S.M.
 S.L.M. (Scientific Leather Measurement) etc.
Units of measurement for leather are either sq.dm or sq. ft.

1 sq. ft. = 9.29 sq.dm.
b. In-Sock: It can be divided in two types:
i. Plain sock
ii. Moulded Sock
Plain sock may be full or half.
Moulded socks are always made full. These are developed according to the
requirement of the designs. Mostly used in stitch down constructions. They are
more costly in compare to plain socks.
It may be made of any lining leather or any non-leather material
(Textile/synthetic).
For leather sock lining we can use any of above methods mentioned.
Units of measurement for sock leather are either sq.dm or sq. ft.
For synthetic/ fabric we can go by tracing(applicable for synthetic or fabrics)

method. These synthetics or fabrics are available in the form of rolls. The norm
for non-leather material is depending on width of the roll.
Trace the maximum components with minimum gap of 2mm (The gap may be
increased if thickness of material is more) for 1 meter length material.
Then calculate the area of rectangle in sq. meter and divide with number of
components. Then norm per component can be calculated.
Units of measurement for non-leather material are either sq. meter. Or meter.

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iii. Socks Cushion: It may be made of any EVA or Latex Foam.
Units of measurement for EVA or Latex Foam is sq. meter. These are available in
the form of sheets.
The thickness of EVA is 3mm used for men and 2 mm for ladies shoes during
making of plain socks.
The Dimensions (LxW) of sheets are required to measure in meter before

calculation.
Trace the maximum components with minimum gap of 4mm (The gap may be
increased up to 10 mm if thickness of material is more).
c. Interlining: Used to make upper material more strong. It is used with upper
leather during bulk production. It helps to retain the shape of upper after de
lasting.
Interlining materials are available in the form of rolls. The width may vary
according to the different material and suppliers.
The specific width can be asked to the interlining supplier if it is required during
bulk production.
There are the following types of interlinings are used in shoe industry:
 Eva coated (e.g. 0.5 mm Eva coated cloth, 0.6 mm flannel cloth etc.)
 Sugar Coated (e.g. Single hosiery, Double hosiery etc.)
 Self-adhesive (e.g. 0.6 mm self-adhesive drill cloth etc.)
 Plain(e.g. 0.7 mm Plain canvas etc.)
The thickness of above interlining may be 0.5 mm to 0.7 mm.
The selection of interlining is depend on the

 Type of material
 Type of construction
There is a good R & D is required during application of interning in a shoe

factory.
If quality of production leather is very good and leather is containing good

thickness then use of interlining can be avoided.
Use of interlining must be finalized after proper sample trial/ size set trial to
avoid any problem in production.
Unit of measurement for interlining is sq. meter. Or meter.

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d. Foam: Foam is a material used to provide comfort in a shoe. It is available in
various thicknesses and densities.
It may be used when

 Any shoe is having leather lining in vamp, quarter or tongue area.
 Or any lining is being used without foam.
There are two types of foams used in a shoe:
 PU Foam
 Latex Foam
PU Foam: It is used as per requirement of the shoe.

e.g. Collar foam may be used 20 mm thickness with 32 D or 40 D.
Quarter or tongue foam may be used 5 mm or 3 mm thickness with 32 D or 40 D.
e. Latex Foam: It can be used as collar foam. Thickness may be 10 mm.
f. Toe Puff: It is used to provide reinforcement in toe part. Also to provide extra
protection to our feet. There are 2 major types of toe puffs used in shoe industry:
Heat Activated (e.g. Thermoplastic & Ping Pong)

Solvent Activated
During selection type of toe puff is depend on shoe construction and category of
the shoe (Gents/ladies/kids).
For Gents shoes T.P. (Thermoplastic toe puffs can be used with 0.9-1.0 mm for
formal shoes and for safety shoes it may be 1.1-1.2 mm)
Also (P.P. can be used with 0.7 -0.9 mm).
For Ladies shoes always P.P. is recommended with thickness 0.4-0.6 mm.
For kids shoes P.P. (0.3 mm to 0.4mm) can be used.
Steel toe puff is also in use during making of safety shoes.
g. Stiffener: It is used to provide reinforcement in back part area.
During selection type of stiffener is depend on shoe construction and category of

the shoe (Gents/ladies/kids).
For Gents shoes T.P. (Thermoplastic toe puffs can be used with 1.1-1.2 mm for
formal shoes and for safety shoes it may be 1.3-1.4 mm)
For Ladies shoes P.P. can be used as stiffener and thickness can be selected 0.6-
0.7 mm.

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2. Materials related to Closing Department:
a. Thread: Types of threads can be divided as below mentioned:

i. Natural (cotton, jute, silk etc.)
ii. Man-made (Nylon, Polyester, Polyamides etc.)
.
Major types of threads used in shoe industries are:
Nylon: These threads are comes in man-made section. These threads are available
with the following ticket numbers:
2 Ply-TKT-60
3 Ply-TKT-40
6 Ply-TKT-20
9Ply-TKT-15
Major thread suppliers name are Coats, Vardhmaan, Thread India etc.
Cotton: These threads are comes in natural thread section.

12 Ply waxy/non-waxy
16 Ply waxy /non waxy
32 Ply waxy
Thread consumption is measured in meters. It can be calculated with the help of

following formula:
Thread consumption =
2 x (Material Thickness + Stitch length) x Stitches/cm+10-15% wastage
allowance
Threads are available in the form of corps with various lengths 500 m, 1000m,
or1500meter.
Threads colour code should be mentioned in specification sheet as per chart given
by the particular supplier.
b. Eyelets: Eyelet scan be classified as per below factors:
 As per number: Increasing the number of the eyelet the diameter of eyelet is
increased.
200 number
250 number
400 number
600 number
 As per shape:
Round
Hexagon
Flat
D-Ring
Butterfly

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It may be plain or blind eyelet used as per requirement.
It is available in various colour like Black Bright, Brown, Dark Brown,

Golden, Silver, Antique, Gun metal etc.
Calculation:
No of eyelets per pair = No. of eyelets used in one odd sample x 2
c. Reinforcements: There are the following areas where a suitable reinforcement

should be used:
Folding parts: especially topline area, use 2mm/5 mm nylon tape.
Eyelet facing: Use felt (S/A tape).
Derby lock: 20 mm nylon tape can be used.
Back seam: 20 mm nylon /cotton tape
Front seam: 50 mm/30 mm nylon tape in cross direction.
After seeing the sample carefully we have to identify the area in which part a
particular type of reinforcement is required.
By using a thread & measuring scale we can measure how much reinforcement is
required in centimeters (You can add 10% wastage allowance also).
Make this quantity for a pair by multiplying with 2.
Make it in meter by dividing with 100.
Finally we will get reinforcement required quantity in meter/ pair.
Now check how much standard length of reinforcement in a particular roll.
When we divide with “length of roll” by “quantity required for one pair”.
Latex
It will give us how many number of pairs per roll can be used.
So, Number of rolls required for any reinforcement= (Total order) / (no. of
pairs used in one roll)
For Eyelet reinforcement (in sheet form) tracing method can be used.
d. Adhesives: Consumptionper pair of adhesives is calculated in grams.

The following adhesives are used in closing department:
 : For temporary bonding used in laminating, folding, fitting.
 Natural rubber solution: Used for laminating, folding, fitting etc.
 Polychloroprene: Used as a permanent adhesive.
 Hot melt adhesives: Used in case of thermo folding machine.
So amount of adhesive should be calculated by taking some small amount like 100
gm. in an adhesive pot and check that amount of adhesive is used for how many
number of pairs.

CONTROLLED
e. Velcro: It is available in the form of rolls in various standard widths like 25 mm,
30 mm, 35 mm, 40 mm, 50 mm, 60 mm, 70 mm, 80 mm, 90 mm etc. So selection
of correct width is required before order.
Consumption of Velcro should be calculated in meter.
f. Zip: Zips are used in boots, half boots, ankle boots, open sandals etc. It is also
available in standard length.
It is very important to confirm what length of zip will be used for a certain size
group.
e.g. Suppose in a bulk order of 10,000 pairs of boot with size assortment
Size 40 41 42 43 44 45 46 Total
Pairs 1000 2000 2000 2000 1000 1000 1000 10,000
The detail of zip order should be mentioned as below manner:
Zip length Sizes Quantity in pairs

(in cm)
30 40-41 3000
32 42-43 4000
34 44-45 2000
36 46 1000
It should be ordered as per number of pairs as above mentioned.
3. Materials related to Lasting Department:

a. Last quantity to be made: It is very important to know how much number of lasts
is required to be made to complete the particular order.
It is a duty of store manager to update real figure of usable lasts in stock quantity. He
must ensure all old lasts in stock are shown are in good condition and can be used in
repeat orders.
LAST DETAIL (IN STOCK) AS ON Date……………….
Total
Last Last Supplier Last
S.no. Detail 40 41 42 43 44 45 46
Name No. name in
Pairs
1 In Stock
Required
To be made
2 In Stock
Required
To be made
3 In Stock
Required
To be made

CONTROLLED
Required number of lasts can be calculated by using the following method:
 Check how many much order to be made.
 Make a table with size and order quantity.
 Divide with least number of pairs quantities to all size quantities.
 Decide how many number of pairs to be produced in 8 hours production on each
lasting line.
 Check what is the type of shoe construction and how many last rotations number are
possible without affecting the quality.
 According to number of last rotations total production output can be calculated.
 For example
Last requirement calculation
Total Last
40 41 42 43 44 45
Calculation detail (in Pairs)
Total Order 150 150 300 450 300 150 1500

Ratio 1 1 2 3 2 1 10
Last Rotation= 5
Total no. of days for
production=2
No of lasting line = 1
Number of last required= 15 15 30 45 30 15 150
Total number of last required in pairs = (Total order quantity)/(Number of Last rotation x Number of
days for production x Number of lasting lines)
b. Sole: It is very important to identify the correct soling material used in the sample.
There are the following types of sole may be used in a shoe:
 Leather sole
 PU (Polyurethane)
 TPU(Thermoplastic Polyurethane)
 Phylon
 M.C.R. ( Microcellular Rubber)
 TPR
 Rubber Sole
 Resin Rubber
 Plantation Creep
 PVC ( Poly Vinyl Chloride)
 E.V.A.( Ethylene Vinyl Acetate)
It is very important to check status of availability of moulds for all sizes on

which company receives bulk order.
Sole materials should be ordered pair wise as per order quantity. Extra
pairs should be also added.
c. Insole: It should be checked what is the type of shoe construction. Accordingly

insole should be ordered in pair wise as per order quantity. Extra quantity should
be ordered.

CONTROLLED
d. Filler: There is EVA of 2 mm thickness can be used as a filler material during
lasting. It can be cut with proper cutting die for which norm per pair should be
calculated in sq. meter.
e. Adhesives (During Lasting): There are two types of adhesives are used in Toe
part and seat and side part lasting:
Polyester: It is a hot melt adhesive in white colour used in toe part lasting. It is
available in rolls.
So consumption should be calculated in meters.
Polyamide: It is a hot melt adhesive in yellow colour used in seat & side lasting.
It is available in rolls.
So consumption should be calculated in meters.
f. Adhesives (After Lasting): There are following adhesives are used in lasting
department:
 PU (Polyurethane)-Use of MEK solvent wipe to remove surface finish
 Polychloroprene or Neoprene -Use of MEK solvent wipe to remove
surface finish.
 TPR (Thermoplastic Rubber)-Also Halogenation is required.
Adhesives consumption should be measured in grams.

Sole primer or hardener should be also ordered with respective adhesives.
g. Finishing items:
The finishing items may be required for upper leather, leather Sole, Leather
Insole, Leather heels, for upper repairing etc.
The purpose of shoe finishing is to add value for the customer by improving
aesthetic look of the shoe .Actually finish is what actually gives further value to
the material.
There are the following materials used for shoe finishing:
 Creams
 Waxes
 Pigments for repairing
 Repairing crayons
 Liquids for finishing
 Cleaner
 Die for edge colouring
Shoe finishing items can be divided into two parts
First part is general finishing item those are required for all seasons. Those
should be purchased as per projection of new orders.
Second part is specific finishing items those are required in case of bulk
orders.
Consumption per pair of shoe finishing products like creams, waxes,
repairing crayons per pair is calculated in Kg.
While items like pigments for finishing, cleaner, die for edge colouring are
calculated in litres.

CONTROLLED
4. Materials related to Packing Department:
For Shoe Box packing:
a. Shoe Box (Inner Box): This is one of major packaging items. Before bulk
ordering of inner box it is very important to determine the perfect dimensions (l x
b x h) in centimeters.
For normal gents shoes standard dimensions are 33cm x 20cm x 12.5 cm
Shoe box should not too much tight or loose.
Biggest size shoe should be taken during inner box dimension checking.
If biggest size shoe is not available then add extra length as per standard grading
system

CONTROLLED
b. Shoe box label: This is the self-adhesive label pasted on shoe box as per specified
by the customer.
Generally the following information may be printed on a shoe box label:
 Customer Name
 Article Number/Style Name
 Size
 Price with barcode
 Manufacturing Date
 Article Picture

CONTROLLED
c. Tissue Papers: Tissue paper are used for the following purpose:
 For stuffing- For this plain tissue paper of slightly lower grade can be used
for stuffing purpose.
 For wrapping-For wrapping plain or printed (as per specified by the
customer) can be used.

CONTROLLED
d. Hang Tag: It is used as per requirement of the customer. Detail of hang tag
should be printed as per specification given in the customer’s brochure.

CONTROLLED
Hang tag may be used as one piece per pair or sometimes attached with the both odds.
This is also specified by the customer in their packaging detail.
There is a string is also used to hang the hang tag with the shoe. Length of string may
be specified by the customer.

CONTROLLED
e. Pictogram: Pictogram is a type of small sticker which shows the material
composition of a shoe.
e.g. If a leather shoe is made of with the following materials :

Upper – leather
Lining- Leather
Sole- PU
Then the correct pictogram will be:
If a leather shoe is made of with the following materials:

Upper – leather
Lining- Textile
Sole- PU
It may be made on self-adhesive white paper (Printed black colour) or may be

made on transparent thin paper. (Printed with colour gold or silver.)

CONTROLLED
f. Leaflet: It a piece of paper that gives you information or advertises something.
It is a specific thing which is asked by very few customers.
It is put in the inner box after final packing.
g. Barcode Labels-
A bar code (often seen as a single word, barcode) is the small image of lines (bars)
and spaces that is affixed to retail store items, identification cards, and postal mail
to identify a particular product number, person, or location.
During a shopping excursion to a shopping mall, you would have noticed the
cashier scanning your products using some Laser device to produce a bill. What
actually he is doing that he is reading the product barcodes using a Laser/Barcode
scanner. Barcode scanner reads the code, data is sent to the computer, and
computer looks up into the database for the price and description of the item.
Barcodes are structured to contain specific product related information. It

basically encodes alphanumeric characters and symbols using black and white
stripes, also called bars. Bar-coding is one of the AIDC (Automatic Identification
and Data Collection) technologies which reduce human involvement in data entry
and collection and thereby also reducing error and time.

CONTROLLED
Barcode symbolizes can be either linear or two-dimensional.
Linear Barcode Standards
Linear barcodes use single row of black and white bars. Examples of linear barcodes are:
· ISO/IEC 15420 Bar code symbology specification - EAN/UPC
UPC (Universal Product Code) uses 12-digit numeric containing a unique manufacturer ID
number, and product number. EAN (European Article Numbering) is similar to UPC except
the fact that it uses 13-digit numeric.
Barcode is a kind of label which may be pasted

On sole
Or
It may be pasted on hang tags
Or
It may be pasted on shoe box label.
Or
Inner quarter lining
Or
On socks lining

CONTROLLED
h. Laces: Laces may be classified on the following basis:
As per shape:
 Round
 Flat
 Oval
As per material:
These are made of

Natural fibers such as cotton laces etc.
Or Synthetic fibers, such as nylon, textured polyester, spun polyester and
polypropylene as well as the traditional natural materials
 Nylon may be waxy or non -waxy
 Cotton may be Waxy or Non-wax

CONTROLLED
There is very important to determine the correct length of a shoe. There are
the following points should be followed during finalizing the length of the lace
for the bulk orders:
 Take the sample and check how many holes or eyelets are given for the
lacing.
 Follow the length as per table.
 Always remember the length should not too much long or short.
 When you select the right length then a proper flower will be formed after
lacing.
Table for Lace length finalization
Holes Length
in cm
2 45
3 65
4 75-85
5 85-90
6 100
7
8 120
9
10 130
11
12 150
13
14 180
15
16 200

CONTROLLED
It can help you to finalizing the correct length of a shoe
Different lacing methods for formal & casual shoes:

CONTROLLED
i. Silica gel Anti-mold sticker or Micro-Pak:
Silica gel is derived from sand and ONLY absorbs moisture. If not enough is used
then there is still moisture present and if the sachets are not kept perfectly dry
before use they will be ineffective when packed with the shoes. There is also a
clear health danger if the silica gel is ingested by workers or consumers.
Beware of silica sachets that also contain toxic substances!
Micro-Pak Enhanced Packaging Stickers are placed in the box at the time of final
packing. When humidity is high the moisture in the air enters the sticker and starts
a reaction that creates a Micro-Pak atmosphere environment. This Micro-Pak
atmosphere environment spreads throughout the package helping to keep the item
clean and fresh.

CONTROLLED
j. Outer carton:
Outer carton is made after the finalization of the inner box or shoe box.
It may be plain form or printed form.
During finalization of outer carton dimensions (l x b x h) always check the ‘outer
limits’ given in the brochure given by the customer.
Outer cartons are made
Type-1: Corrugated (Pasted) cartons:

This is costly and used for export purpose. All good customers are always
preferred for this due to good strength, durability during transport.
It may be used for 6 pairs, 8 pairs, 10 pairs, 12 pairs etc as per requirement of the
customer.
In shoe export minimum 7 ply corrugated cartons are used.
Type-2- Stapled Cartons: This is having less durability and it can be made in
lower cost. It is used in domestic shoes packaging during small distance
transportations. It cannot be used during export business.

CONTROLLED
Carton Tape: Carton tapes are very important part of packaging.
The recommended width of carton tape is 3 inches.
It may be classified as following:
 Plain Coloured
 Plain transparent
 Printed transparent
 Coloured printed

CONTROLLED
k. Outer Carton label-It is required after final sealing /packing of inner box into the
outer carton.
In export business sometimes customer may ask for printed carton or sometimes
plain.
So requirement of carton labels for shipping mark & side marks are made
according to the customer’s instructions.
Shipping mark& side mark

CONTROLLED
For Polybag packing:
a. Poly bag with hanger: Poly bag used printed form.
Sometimes there is a rope or dori is used in the top of poly bag or sometimes they
ask for hanger also for hanging display.
The size of poly bag should be checked carefully before finalizing the dimensions
for bulk order & take approval from the buyer also.
b. Sole Barcode: Already mentioned earlier.

c. Hang tag: Same as mentioned earlier.
d. Outer carton with crate:

CONTROLLED
Carton with crate is used for poly bag packing. Carton dimensions are finalized earlier and
crates are made according to the inner dimensions of the carton.
Crates are made in such way those can be easily inserted and removed.
e. Outer box label: Same as inner box packing.
f. Carton tape: Earlier explained.

CONTROLLED
COSTING SHEET
ARTICLE NO. A-9910
MOULD M-2727
LAST L-1000880
DATE 3/7/2015
SAMPLE SIZE 7
AVERAGE SIZE 9
SIZE (S) 6 7 8 9 10 11 12 TOTAL
PAIRS (n) 2000 2000 4000 4000 4000 2000 2000 20000
MATERIAL SPECIFICATION COLOR CONSUM. UNIT PRICE REQUIRED QTY SUPPLIER PRICE UOM
A.CUTTING
UPPER COW BURNISH ( 1.2 - 1.4 MM) BROWN 18.40 15.00 K.K. TANNERS 276 SDM
VAMP LINING SKIN FIT WITH 3MM FOAM BROWN 0.045 80 JASCH 3.60 SQM
QUARTER+TOUNGE LINING COW DD (0.7-0.9 mm) TAN 12.40 7.50 CHAWALA TANNERY 93.00 SDM
HEEL GRIP SPLIT SUEDE TAN 3.12 5.50 INDIAN 17.16 SDM
INTERLINING 0.5 MM EVA CAOTED OFF WHITE 0.089 130 NAVKAR 11.57 SQM
IN- SOCK COW DD (0.7-0.9 mm) TAN 6.6 7.50 CHAWALA TANNERY 49.5 SDM
SOCK CUSION EVA 3MM WHITE 0.065 150 NAVKAR 9.75 SQM
QUARTER + TONGUE FOAM 5 MM 40 D GREY 0.115 125 RICHA 14.37 SQM
TOE PUFF T. P. (0.9 MM) YELLOW 0.025 220 TECNO GI 5.50 SQM
STIFFNER T. P. (1.1 - 1.2 MM) YELLOW 0.058 225 TECNO GI 13.05 SQM
LABOUR COST 12.50 PAIR
TOOLING COST 500000 4.00 PAIR
MACHINERY COST DEP/YEAR 1.50 PAIR
Total Cost (Cutting) 511.5
B.CLOSING
THREAD UPPER 1 NYLON TKT 40 (904) 3 PLY DARK BROWN 12.75 0.80 THREAD INDIA 10.20 MTR
THREAD LINING NYLON TKT 40 (904) 3 PLY TAN 11.50 0.80 THREAD INDIA 9.20 MTR
EYELET TAPE FELT 20 MM GREY 0.26 7.50 S.K ENTERPRISES 1.95 MTR
NEEDLE 1 LR 21 SILVER 0.30 GEORGE 0.30 PCS
NYLON TAPE 5 MM BLACK 0.54 1.50 S.K ENTERPRISES 0.81 MTR
ADHESIVE LATEX WHITE 15 0.04 S.S ENTERPRISES 0.60 GRAM
Total Cost (Closing) 45.88
C. LASTING
SOLE PU DARK BROWN 1 100 ALERT 100 PRS
INSOLE CONTINENTAL PINK 1 15 S.K ENTERPRISES 15 PRS
ADHESIVE 1 (TOE LASTING) HOT MELT ADHESIVE, POLYSTER WHITE 12 0.96 JINDAL PLASTIC 11.52 GRAM
ADHESIVE 1 (SEAT & SIDE LASTING) HOT MELT ADHESIVE, POLYAMIDE YELLOW 15 1.12 JINDAL PLASTIC 16.80 GRAM
MOULD COST CASTING IRON METAL 1 0.83 UNISOLE 0.83 PAIR
Total Cost (Lasting) 179.9
D. FINISHING
TOP CREAM TOP SHINER BROWN 10 0.40 STAWL 4.00 GRAM
WAX 1 FOR CUTTING (COTTON BRUSH) BROWN 12 0.40 STAWL 4.80 GRAM
WAX 2 FOR POLISHING (WOOLEN BRUSH) NATURAL 8 0.30 STAWL 2.40 GRAM
TISSUE PAPER 1 (2 FOR STUFFING) STANDARD SIZE WHITE 2 0.25 ROYAL PACKAGING 0.50 PCS
TISSUE PAPER 2 (2 FOR WRAPING) STANDARD SIZE/BATA PRINTED WHITE 2 0.60 ROYAL PACKAGING 1.20 PCS
HANGTAG AS PER DETAIL AS PER DETAIL 1 1.00 ROYAL PACKAGING 1.00 PCS
PICTOGRAM L/L/O AS PER DETAIL 1 0.25 ROYAL PACKAGING 0.25 PCS
LEAFLET AS PER DETAIL AS PER DETAIL 1 1.25 ROYAL PACKAGING 1.25 PCS
BARCODE AS PER DETAIL AS PER DETAIL 1 0.25 ROYAL PACKAGING 0.25 PCS
LACES COTTON ROUND WAXY 85 CM DARK BROWN 1 6 INDIA LACE 6 PCS
SHOE BOX AS PER DETAIL AS PER DETAIL 1 20.00 ROYAL PACKAGING 20.00 PCS
SHOE BOX LABEL AS PER DETAIL AS PER DETAIL 1 0.60 ROYAL PACKAGING 0.60 PCS
STRING 9 CM STANDARD 1 0.15 S.R PRINTERS 0.15 PCS
MICRO -PAK STANDARD LIGHT GREEN 1 0.70 ANNA PACKAGING 0.70 PCS
OUTER
OUTER CARTON
CARTON LABEL 1 - FRONT 7 PLY (10 PAIRS - SOLID) BROWN 1 60.00 ROYAL PACKAGING 6.00 PAIR
MARK AS PER DETAIL AS PER DETAIL 1 3.00 ROYAL PACKAGING 3.00 PAIR
OUTER CARTON LABEL 2 - SIDE MARK AS PER DETAIL AS PER DETAIL 1 1.00 ROYAL PACKAGING 1.00 PAIR
CARTON TAPE PRINTED ( FOR 2020 CTNS OF 10 PRS) WHITE 5 MTR/CTN 50.00 PER ROLL ROYAL PACKAGING 0.50 PAIR

TOOLING COST 3.34 PAIR
MACHINERY COST 0.55 PAIR
Total Cost (Finishing) 64.99
RMC (A+B+C+D) 802.27
SUBTOTAL 1:
VARIATION@ 2% 818.3154
SUB TOTAL 2:

M O/H@ 10% 900.1469
LOAN INTEREST
SUB TOTAL 3:
B.A. COMMISION
PROFIT MARGIN@
7%
25%
CONTROLLED 963.1572
INR 240.7893
G. TOTAL INR 1203.947
Costing Sheet with example for a Leather shoe:
Suppose an Export shoe company receives an order of 20,000 pairs for an article: A-9910. So the
merchandizer has to prepare costing sheet for this article.
ARTICLE A-9910
There are the following steps are required to make a costing sheet for a leather shoe:
Step1: Prepare an Excel sheet and name the title “Costing Sheet”.
Step2: Write the Following detail:

i. Company’s Name
ii. Customer
iii. Article No.
iv. Mould
v. Last
vi. Date
vii. Sample Size
viii. Average size
ix. Total order in pairs
Step3: Draw a table for size assortment as per given in the Purchase Order.

CONTROLLED
COSTING SHEET
ARTICLE NO. A-9910
MOULD M-2727
LAST L-1000880
DATE 3/7/2015
SAMPLE SIZE 7
AVERAGE SIZE 9
SIZE (S) 6 7 8 9 10 11 12 TOTAL
PAIRS (n) 2000 2000 4000 4000 4000 2000 2000 20000
MATERIAL SPECIFICATION COLOR CONSUM. UNIT PRICE REQUIRED QTY SUPPLIER PRICE UOM
A.CUTTING
UPPER COW BURNISH ( 1.2 - 1.4 MM) BROWN 18.40 15.00 K.K. TANNERS 276 SDM
VAMP LINING SKIN FIT WITH 3MM FOAM BROWN 0.045 80 JASCH 3.60 SQM
QUARTER+TOUNGE LINING COW DD (0.7-0.9 mm) TAN 12.40 7.50 CHAWALA TANNERY 93.00 SDM
HEEL GRIP SPLIT SUEDE TAN 3.12 5.50 INDIAN 17.16 SDM
INTERLINING 0.5 MM EVA CAOTED OFF WHITE 0.089 130 NAVKAR 11.57 SQM
IN- SOCK COW DD (0.7-0.9 mm) TAN 6.6 7.50 CHAWALA TANNERY 49.5 SDM
SOCK CUSION EVA 3MM WHITE 0.065 150 NAVKAR 9.75 SQM
QUARTER + TONGUE FOAM 5 MM 40 D GREY 0.115 125 RICHA 14.37 SQM
TOE PUFF T. P. (0.9 MM) YELLOW 0.025 220 TECNO GI 5.50 SQM
STIFFNER T. P. (1.1 - 1.2 MM) YELLOW 0.058 225 TECNO GI 13.05 SQM
Total Cost (Cutting) 511.5
Step4: Calculate the average size for the given order by using formula ∑Sn/n.
Step5: Insert a clear picture of the article for which costing sheet has to be made.
Step6: Draw another table just below the size assortment with column containing the following
details:
i. Material
ii. Specification
iii. Colour
iv. Consumption
v. Unit Price
vi. Required quantity
vii. Supplier name
viii. Price
ix. UOM (Unit of measurement)
Step7: Start first with Cutting department.

CONTROLLED
Step8: Write first the detail of upper material specification with colour. For specification about
leather you should write the thickness in m. m. and for textile/fabrics required to write ‘with foam’ or
‘without foam’for e.g. it is mentioned for upper Cow Burnish (1.2-1.4 mm).
For vamp lining it is skin fit with 3 mm foam.
Calculate the norm for upper and lining (vamp+ quarter + tongue + in sock materials)
Write them in respective columns.
Step9: Write down the dimensions of toe puff material. Write its detail Techno G.I. thickness0.9-1
mm in respective column.
Calculate the area in sq. meter of one sheet by multiplying the length and width in meters.
Trace maximum number of toe puff components on sheet and divide it with area of toe puff sheet.
This will give the norm per odd in sq. m.
Multiply with 2 will give norm of toe puff per pair in sq. meter can be calculated.
Similarly it can be done for stiffener also.
Step9: Write down the ‘unit price’ of all materials which are belonging to cutting department.
Step10: Multiply the ‘Consumption per pair’ with ‘unit price’, will give you the price of one pair
material.
Step11: Calculate labour cost per pair and write it in the given column.
Step12: Calculate Tooling cost per pair and write it in the given column.
For this make a list of all tools which are going to use in cutting for the given article.
e.g. Scissor, Hand cutting knife, hammer etc.
Calculate their quantities.
Calculate the total cost tooling materials of cutting dept.
Assume their depreciation year is 10.
Then divide the total tool cost with 10 will give depreciation cost per year for tooling materials in
cutting dept.
Divide depreciation cost per year with no. of pairs.
It will give tooling cost per pair for the cutting dept.
Step13: Calculate machinery cost per pair and write it in the given column.
For this make all types of machines in cutting dept. With quantities those are going to use for
this article.
Calculate the cost of all machines in cutting dept.
Calculate depreciation year. It is assumed 20 years.
Divide the total cost of machines with 20.
This will give depreciation cost per year of all machines.
Divide depreciation cost per year with the total number of pairs,
It will give ‘the machinery cost per pair in cutting dept.’
Step14: Add cost of all cutting material per pair + labour cost per pair +Tooling cost per pair +
machinery cost per pair). It gives total cost per pair for cutting department.
e.g. for art A-9910 it is Rs.511.5

CONTROLLED
Step17: Now go for next department- Closing.
B.CLOSING
THREAD LINING NYLON TKT 40 (904) 3 PLY TAN 11.50 0.80 THREAD INDIA 9.20 MTR
EYELET TAPE FELT 20 MM GREY 0.26 7.50 S.K ENTERPRISES 1.95 MTR
NYLON TAPE 5 MM BLACK 0.54 1.50 S.K ENTERPRISES 0.81 MTR
ADHESIVE LATEX WHITE 15 0.04 S.S ENTERPRISES 0.60 GRAM
Total Cost (Closing) 45.88
Step18:Measure the thread consumption per pair by using formula
= 2x(Material Thickness+ Stitch length) x stitches/cm + 10%-15% wastage allowance
Step 19:Eyelet tapes are required to calculate per pairs in meters as it is available in rolls of
20 mm.
Step 20:Cost of needle is depend how many needles work for how many pairs.
Step 21:Nylon tapes are available in the form of rolls. It is measured in meter.
Step 22: Latex Adhesives are measured grams.
Step 23: Calculate labour cost per pair.
Step 24: Tooling cost per pair.

For this check what types of tools and their quantities which are being used for this article
during closing operations like hammer, Stone, scissors, punches etc.
Then calculate total cost for all tools.
Check their total depreciation years. Assume it is 10 years.
Then calculate the depreciation tooling cost per year by dividing ‘Total cost of tools ‘with 10.
Then divide ‘depreciation tooling cost per year’ with ‘total no. of pairs’.
This will give ‘the tooling cost of closing per pair’.
Step 25: Calculate the machine cost per pair.

For this make a all types of machines with quantity those are going to used for this article.
Calculate the cost of all machines.
Calculate depreciation year. It is assumed 20 years.
This will give depreciation cost of all machines in closing.

CONTROLLED
Divide depreciation cost with the total number of pairs, will give ‘the machinery cost per pair
in closing dept.’
Step 26: Add cost of all closing material per pair + labour cost per pair +Tooling cost per pair
+machinery cost per pair). It gives total cost per pair for closing department.
Step 27: Now go for next department that is Lasting Department.
C. LASTING
SOLE PU DARK BROWN 1 100 ALERT 100 PRS
INSOLE CONTINENTAL PINK 1 15 S.K ENTERPRISES 15 PRS
ADHESIVE 1 (TOE LASTING) HOT MELT ADHESIVE, POLYSTER WHITE 12 0.96 JINDAL PLASTIC 11.52 GRAM
ADHESIVE 1 (SEAT & SIDE LASTING) HOT MELT ADHESIVE, POLYAMIDE YELLOW 15 1.12 JINDAL PLASTIC 16.80 GRAM
MOULD COST CASTING IRON METAL 1 0.83 UNISOLE 0.83 PAIR
Total Cost (Lasting) 179.9
Step 28: Calculate the unit cost for sole.
Step29: Calculate the insole cost per pair.

For this calculate the dimensions of insole sheet in meters.
Calculate the area of insole sheet in sq. meter.
Calculate how many numbers of components are traced in one sheet with appropriate gap.
Calculate the insole norm for one component for an average size
= Area of insole sheet (sq. m)/No. of components traced for an average size
Step 30: For filler 2 mm EVA can be used in case of stuck on articles.
For this calculate the dimensions of EVA sheet in meters.
Calculate the area of EVA sheet in sq. meter.
Calculate how many numbers of components are traced in one sheet with appropriate gap.
Calculate the filler component norm for an average size
= Area of EVA sheet (sq. m)/No. of components traced for an average size
Step 31:For Toe lasting hot melt adhesives: Polyester

We can check how many pairs are completed for one roll of polyester.
Take the weight in grams for the roll.
Consumption for Polyester adhesive per pair= Total weight of one roll in grams/ Total no. of
pairs.
Calculate the cost of adhesive per gram.
So cost of one pair of Polyester = Consumption for Polyester adhesive per pair in grams x
Cost of the Polyester adhesive per gram.
Step 32: For Seat & side lasting hot melt adhesives: Polyamide
We can check how many pairs are completed for one roll of Polyamide.
Take the weight in grams for the roll.

CONTROLLED
Consumption for Polyamide adhesive per pair= Total weight of one roll in grams /Total no.
of pairs.
Calculate the cost of Polyamide adhesive per gram.

So cost of one pair of Polyamide = Consumption for Polyamide adhesive per pair in grams x
the cost of the Polyamide adhesive per gram.
Step 33: Mould cost calculation.

Check what the manufacturing cost of new mould in Rs is.
Calculate depreciation cost of moulds = Manufacturing cost in Rs. /10
(Assuming total working years of moulds are 10)
Calculate cost of mould per pair =Calculate depreciation cost of moulds/Total No. of pairs
Step-34: Calculate labour cost per pair and write it in the given column.
Step 35: Calculate Tooling cost per pair and write it in the given column.
For this make a list of all tools which are going to use in lasting for the given article.
e.g. Hammer , pincer. Adhesive pot etc.
Calculate their quantities.
Calculate the total cost tooling materials of lasting dept.
Assume their depreciation year is 5.
Then divide the total tool cost with 5 will give depreciation cost per year for tooling materials in
lasting dept.
Divide depreciation cost per year with no. of pairs.
It will give tooling cost per pair for the lasting dept.
Step 36: Calculate machinery cost per pair and write it in the given column.
For this make all types of machines in lasting dept. With quantities those are going to use for
this article.
Calculate the cost of all machines in lasting dept.
Calculate depreciation year (total life). It is assumed 20 years.
This will give depreciation cost per year of all machines in lasting dept.
Divide depreciation cost per year with the total number of pairs,
It will give ‘the machinery cost per pair in lasting dept.’
Step 37: Add cost of all lasting material per pair + labour cost per pair for lasting +tooling cost per
pair for lasting+ machinery cost per pair for lasting). It gives total cost per pair for lasting
department.
e.g. for art A-9910 it is Rs.179.9.

CONTROLLED
Step 38:Now go for Finishing & Packing:
D. FINISHING
TOP CREAM TOP SHINER BROWN 10 0.40 STAWL 4.00 GRAM
WAX 1 FOR CUTTING (COTTON BRUSH) BROWN 12 0.40 STAWL 4.80 GRAM
WAX 2 FOR POLISHING (WOOLEN BRUSH) NATURAL 8 0.30 STAWL 2.40 GRAM
TISSUE PAPER 1 (2 FOR STUFFING) STANDARD SIZE WHITE 2 0.25 ROYAL PACKAGING 0.50 PCS
TISSUE PAPER 2 (2 FOR WRAPING) STANDARD SIZE/BATA PRINTED WHITE 2 0.60 ROYAL PACKAGING 1.20 PCS
HANGTAG AS PER DETAIL AS PER DETAIL 1 1.00 ROYAL PACKAGING 1.00 PCS
PICTOGRAM L/L/O AS PER DETAIL 1 0.25 ROYAL PACKAGING 0.25 PCS
LEAFLET AS PER DETAIL AS PER DETAIL 1 1.25 ROYAL PACKAGING 1.25 PCS
BARCODE AS PER DETAIL AS PER DETAIL 1 0.25 ROYAL PACKAGING 0.25 PCS
LACES COTTON ROUND WAXY 85 CM DARK BROWN 1 6 INDIA LACE 6 PCS
SHOE BOX AS PER DETAIL AS PER DETAIL 1 20.00 ROYAL PACKAGING 20.00 PCS
SHOE BOX LABEL AS PER DETAIL AS PER DETAIL 1 0.60 ROYAL PACKAGING 0.60 PCS
STRING 9 CM STANDARD 1 0.15 S.R PRINTERS 0.15 PCS
MICRO -PAK STANDARD LIGHT GREEN 1 0.70 ANNA PACKAGING 0.70 PCS
OUTER
OUTER CARTON
CARTON LABEL 1 - FRONT 7 PLY (10 PAIRS - SOLID) BROWN 1 60.00 ROYAL PACKAGING 6.00 PAIR
MARK AS PER DETAIL AS PER DETAIL 1 3.00 ROYAL PACKAGING 3.00 PAIR
OUTER CARTON LABEL 2 - SIDE MARK AS PER DETAIL AS PER DETAIL 1 1.00 ROYAL PACKAGING 1.00 PAIR
CARTON TAPE PRINTED ( FOR 2020 CTNS OF 10 PRS) WHITE 5 MTR/CTN 50.00 PER ROLL ROYAL PACKAGING 0.50 PAIR
TOOLING COST 3.34 PAIR
MACHINERY COST 0.55 PAIR
Total Cost (Finishing) 64.99
Step 39:Calculate the finishing cream cost per pair.

Check the weight of finishing cream in grams.
Check how many pairs are completed in one box cream.
Calculate the consumption of finishing cream = Weight of all finishing cream/Total no. of pairs
Step 40: Calculate the wax cream cost per pair.

Check the weight of wax cream in grams.
Check how many pairs are completed in one box wax cream.
Calculate the consumption of cream = Weight of all wax cream /Total no. of pairs
Step 41: Calculate Shoe box price per piece.

For measurement check carefully l x b x h in cm.
Step 41: Tissue papers Plain/Printed

Calculate cost of tissue paper per piece in Rs.
Sometimes printing cost may be given in ‘Ream’. Then printing units can be calculated by using
following details:
A ream of paper is a quantity of sheets of the same size and quality. Formerly it was 480 sheets, 20
quires, for common sizes such as letter-size paper (8½ in. ×11 in.). A printer's ream was 516 sheets,
perhaps to allow for wastage. As part of international standardization, this quantity was changed to

CONTROLLED
500 sheets. The old value of 480 sheets is now known as a short ream. The ream is the most common
packaging size of retail writing and printing paper, and 'full' and 'short' reams are often shelved side-
by-side. For this reason, it is recommended that buyers pay special attention to whether the ream
contains 500 or 480 sheets when comparing two products.
Writing paper measurements

25 sheets = 1 quire
500 sheets = 20 quires = 1 ream
1,000 sheets = 40 quires = 2 reams = 1 bundle
5,000 sheets = 200 quires = 10 reams = 5 bundles = 1 bale
Posters and printing measurements

516 sheets (= 21½ 'short' quires) = 1 printer's ream
1,032 sheets = 2 printer's reams = 1 printer's bundle
5,070 sheets = 5 printer's bundles = 1 printer's bale
Step 42:Price of Hang Tag, Pictogram, Leaflet, Barcode, Laces, Shoe box label, strings, micro-pack,
Outer carton, Outer carton label, Carton tape can be calculated with per piece cost.
Step43: Calculate labour cost, Tooling cost, Machinery cost for finishing & packing dept. as above
mentioned.
e.g. for art A-9910 it is Rs.64.9.
Step 44: Add cost of all finishing & packing material per pair + labour cost per pair for finishing &
packing +Tooling cost per pair for finishing & packing+ machinery cost per pair for finishing &
packing). It gives total cost per pair for finishing & packing department.
Step 45: Calculate prime or direct cost which can be calculated by adding cost of all departments as
shown in costing sheet format.
Step 46:Add overhead @ 10% in Prime Cost. This will give your office cost or manufacturing cost
or cost of production per pair.
Step 47:Add selling and distribution expenses@ 7% this will give your ‘Total cost per pair in Rs.’
Step 48: Add profit margin @ 25% this will give your ‘Net Selling Price in INR’

CONTROLLED
Numerical Exercise based on shoe costing: (Solved examples)
Q.1. If a new shoe factory has to start with capacity of 5000 pairs per day. If there are 45
swing arm clicking press and 5 Travelling head press machines are purchased for their
Cutting Department. After proper installation of all machines the company receives an export
order of 100000 pairs for an article X. If per unit cost of swing arm clicking press is Rs.
1,50,000& travelling head press machine is Rs. 300000.Calculate machinery cost per pair for
article X in Rs.
Solution:
Total cost of 45 swing arm clicking press machine@ Rs. 1,50,000=45x150000
= Rs.6,75,0000
Total cost of 5 Travelling head press machine@ Rs. 3,00,000= 5x3,00,000

= Rs.1,50,0000
Total machine costs= Rs. 6750000 + Rs. 1500000

= Rs. 8250000/-
By considering total depreciation years are 20.

Then depreciation cost per year for above machines = Rs. 8250000/ 20
= Rs 412500
So machinery cost per pair for article X= Depreciation cost per year / Total no of years
= Rs. 412500/100000
= Rs.4.12500
= Rs. 4.13 ………………….Answer.
Q.2. If a shoe factory receives an export order of 90,000 pairs for an article A (for sizes
40-46).After finalization of its production trial the shoe company places complete clicking
die sets for the production. Also shoe company places total 200 pairs of PVC last for their 2
lasting line production. If cost of one clicking die set is Rs. 60,000/- and per unit cost of PVC
last is Rs. 600. Calculate tooling cost per pair for article A.
Solution:
Total cost of 2 clicking die sets = Rs. 60,000 x 2 = Rs. 1,20,000
Total cost of 200 PVC lasts = Rs. 600 x 200 = 1,20,000
Total tooling cost = Rs. 1,20,000 + Rs. 1,20,000

= Rs. 2,40,000
By considering total depreciation years are 5.
Depreciation cost per year for above tooling items = Rs.2,40,000/5

= Rs.48000
Total no. of pairs = 90,000
So, Tooling cost per pair for article A

CONTROLLED
= Depreciation cost per year/ Total no. of pairs
= Rs. 48000/ 90,000
= Rs. 0.53 …………………………..Answer
Q.3. If a shoe company is running with capacity of 2000 pairs per day. If labour cost per hour
in cutting department is Rs. 4.00. If a clicker Jeetu worked for one week as below mentioned
in clicking department:
Day Working
Hours
Monday 8
Tuesday 10
Wednesday 9
Thursday 8
Friday 10
Saturday 8
Sunday 4
The company has made the following rules for wedges:

 Maximum no. of hours in one week is allowed 48.
 During over time and holiday double wages should be paid to the
clickers.
If D.A. of Rs. 500 is also given per week. Calculate how much wedge should be given to the
clicker Jeetu for above week
Solution:
Total number of hours = 57 in which
Over time = 2+1=2+4= 9 hours
Total wedge = No. of normal working hours x Rs.4 + No. of extra working hours x Rs. 8+
Weekly D.A
= 48 x Rs. 4+ 9 x Rs. 8+ Rs. 500
= 192 + 72 + 500
= Rs. 764 ………………….Answer.
Q.4. If a shoe company receives an order of 40,000 pairs for an article Z-111. If
Prime cost is calculated= Rs. 645.00
Factory overhead is calculated= Rs.18.00
Administrative expenses = Rs.22.00
Administrative overheads=Rs. 21.00
Selling & distribution expenses = R.9.00
Profit = 30%
 Factory cost per pair
 Factory Cost
 Office cost per pair

CONTROLLED
 Total costs per pair
 Net selling price per pair
 Net selling price
For above article.
Solution:
Factory cost per pair = Prime costs + Factory overheads
= Rs. 645.00 + Rs. 18.00
= Rs. 663.00…………Answer
Factory cost = Rs.663.00 x 40,000
= Rs. 26520000.00 ……….Answer
Office costs per pair = Factory Cost + Administrative expenses

= Rs. 663.00 + Rs.22.00 = Rs.685.00 …………Answer
Total costs per pair = Office costs + Administrative overheads+Selling expenses+ distribution
expenses
= Rs. 685.00 + Rs. 21.00 + Rs. 9.00
= Rs. 715.00 ……….Answer
Net selling priceper pair = Total costs + Profit
= Rs. 715.00 + 30% of Rs.715.00
= Rs. 715.00 + Rs.214.5
= Rs. 729.50…………..Answer
Net selling price = Rs. 729.50 x 40,000
= Rs. 37180000.00…………..Answer
Q.5. If a shoe company receives an order of 50,000 pairs for article X.

For article X
Insole sheet dimensions are 1.52 m x 1.86 m.
If total 34 components are traced for average size.
Cost of one insole sheet is Rs. 325.00.
Then calculate
 Insole norm per pair for above article.
 Insole cost per pair
 How many numbers of sheets will be required for above article.
Solution:
Area of insole sheet = 1.52 m x 1.86 m
= 2.8272 sq. meter
Norm for one insole component for average size = 2.8272/34

= 0.083 sq. meter………..Answer
Insole cost per component = Rs.325/ 34= Rs. 9.55

Insole cost per pair = Rs. 9.55/ 2 = Rs. 4.77 ……………………..Answer

CONTROLLED
34 components = 34/2 =17 pairs
Total number of sheets required for 50,000 pairs = 50,000/ 17
= 2941.176 sheets
= 2942 sheets ………………Answer
Numerical Exercise for Practice
Q.1. If an Export shoe company receives an order of 12000 pairs for an article U-5517.
As below mentioned:
Article U-5517
Size 6 7 8 9 10 11 12 Total
Pairs 1000 1000 2000 3000 3000 1000 1000 12000
Prepare a costing sheet format for above article.
Q.2.If a new shoe factory has to start with capacity of 2000 pairs per day. If there are 15
swing arm clicking press and 1 Travelling head press machines are purchased for their
Cutting Department. After proper installation of all machines the company receives an export
order of 25000 pairs for an article A. If per unit cost of swing arm clicking press is Rs.
1,40,000& travelling head press machine is Rs. 270000.Calculate machinery cost per pair for
article A in Rs.
Q.3.If a shoe factory receives an export order of 45,000 pairs for an article Y (for sizes
39-46). After finalization of its production trial the shoe company places complete clicking
die sets for the production. Also Shoe Company places total 1800pairs of PVC last for their 2
lasting line production. If cost of one clicking die set is Rs. 75,000/- and per unit cost of PVC
last is Rs. 650. Calculate tooling cost per pair for article Y.
Q.4.If a shoe company receives an order of 20,000 pairs for an article T-311. If
Prime cost is calculated= Rs. 545.35
Factory overhead is calculated= Rs.12.40
Administrative expenses = Rs.11.00
Administrative overheads=Rs. 12.80
Selling & distribution expenses = Rs.6.60
Profit = 22%
 Factory cost per pair
 Factory Cost
 Office cost per pair

CONTROLLED
 Total costs per pair
 Net selling price per pair
 Net selling price
For above article.
Q.5.If a shoe company receives an order of 17800 pairs for an article T-311
Size 6 7 8 9 10 11 12 Total
Pairs 1250 1750 3150 5950 3050 1670 980 17800
 Calculate average size for above order.

 If upper norm for sample size 7 is 18.22 sq. dm.
Calculate upper norm for average size.
 Calculate how many extra pairs should be considered for above order.
 Prepare a costing sheet format for above article.
 If vamp lining is used skin fit & its width is found 1.6 meters and 35 vamps are traced
in one meter length then calculate the norm for vamp lining in sq. meter.
 Also calculate how many rolls of skin fit should be ordered to complete above order
quantity.
 Prepare how much thread will be required if thread consumption per pair is
calculated
for upper : TKT-40/3 Black– 12.5 Meters
for lining TKT-40/3 Tan – 15 Meters
Q.6.If a shoe company receives an order of 17600 pairs for an article T-316.
Size 6 7 8 9 10 11 12 Total
Pairs 1150 1750 3150 5950 3050 1670 880 17600

CONTROLLED
 Prepare how many shoe lasts should be made to complete the above order if
management has decided to make 1600 pairs per day this article on two lasting lines.
 Draw a picture of pictogram for above article. How many pictograms will be required
for above order if pictogram has to be pasted on both odds?
 How many cartons will be required? If packing is solid of 10 pairs.
 How many rolls of packaging tape will be required? If length of one roll is 45 meter
and 4.5 meter tape is required to pack one carton of 10 pairs.
Q.7. Make a costing sheet format for below art Z-5522 for which a shoe company Blue Star
International receives an order of 40,000 pairs.
Size 6 7 8 9 10 11 12 Total
Pairs 1000 1200 2500 3000 2000 1300 1000 12000
Take the help of following detail:

CONTROLLED
Component Material Thickness Colour Norm (Size 41) UOM
Upper Cow Softy 1.2-1.4 mm Black 12.5 sq.dm.
with
laminated 3
Vamp Lining Skin Fit mm foam Tan 0.045 Sq. m.
Quarter
Lining Cow DD 0.7-0.9 mm Tan 8.3 sq.dm.
Counter
Lining Split Suede 0.7-0.9 mm Beige 2.7 sq.dm.
Socks Lining Cow DD 0.7-0.9 mm Tan 6.5 sq.dm.
Socks
Cushion EVA 3 mm White 6.2 sq.dm.
Collar Foam 20 mm 32 D Grey 2 sq. m.
Quarter
foam 5 mm 32 D Grey 8 sq. m.
Interlining EVA Coated 0.5 mm Black 15.1 sq. m.
Elastic 25 mm Black sq. m.
 Also assume shoe construction is stuck on.

 Polybag Packing
 Solid 10 pairs per carton.
Q.8Make a costing sheet format for below art Z-6522 for which a shoe company Horizon
Size 36 37 38 39 40 41 42 Total
Pairs 1 2 2 3 2 1 1 12
If article Z- 6522 is a new article and management has decided to make above article 2400
pairs per day (with 800 pairs each line) in working hours on three lasting lines.
 Calculate how many new last should be made to complete 1800 pairs per day target?
 If cost of one last is Rs. 700.00 and cost of die set is Rs. 55,000 then calculate the
tooling cost per pair in Rs.
 If Management has paid total Rs. 3300000 as a labour cost for above article. Calculate
overall labour cost per pair for above article.

CONTROLLED
 If ratio of labour cost per pair for cutting, closing, lasting , finishing, packing is
Department Labour cost per pair ratio

Cutting 1
Closing 3
Lasting 5
Finishing 1
Packing 1
Then calculate labour cost for each department.
 Prepare a Costing sheet format for above article.
Q.9.Make a costing sheet format for below art MS-3101 for which a shoe company Rozer
 If time taken by a skilled clicker Ramesh to cut one pair for above article is 4 minutes.
If he works for one week regularly (from Monday to Saturday within 8 working
hours).How many pairs will cut by Ramesh in one week working hours?
 If labour cost of one pair is Rs. 5.00 and there is a D.A. of Rs. 1000 per week also to
be given. Then calculate what wage should be paid to the clicker Ramesh after one
week work for above article.
 If time taken by another clicker Jeetu to cut one pair for above article is 5 minutes. If
he works for one week regularly but for 5 hours on Monday, 6 hours on Tuesday, 4.5
hours on Wednesday, 5.5 hours on Thursday, 7 hours on Friday, 8 hours on Saturday.
How many pairs will cut by Jeetu in one week working hours?
 What wage should be paid to the clicker Jeetu for one week working hours.
Q.10. If a shoe factory is producing 256 pairs per last rotation of an article X from three
lasting lines.
After checking the process on all three conveyors some bottlenecks are removed and
output becomes 288 pairs per last rotation.
 Calculate variation of lasting output per last rotation for article X.

CONTROLLED
 If the total numbers of lasts are taken 96 pairs on each lines. Next day total lasts are
taken on line first 80 pairs, line second 112 pairs & line third 96 pairs. Then calculate
Total output of all three lasting lines per last rotation for the same article X Also
calculate variation % in total output of each last rotation.
Q.11.If a shoe factory receives an export order of 22500 pairs for a style Jupiter.
Size 6 7 8 9 10 11 12 Total
Pairs 1870 2470 3790 5400 4780 2210 1980 22500
Total material cost for lasting department is calculated Rs.3375000

Total lasting labour cost = Rs. 495000
Total Tooling cost = Rs.135000
Total machinery cost = Rs. 67500
 Calculate total cost per pair of style Jupiter for lasting department for above
order.
 If shoe construction of style Pluto is stuck on then calculate total number of
last required for above order if total lasting has to be completed within 10 days
normal working hours by using 3 lasting lines.
Also calculate tooling cost per pair in this case. If the cost of one pair last is
Rs. 600.
 If shoe construction of style Pluto is stitch down then calculate total number of
last required for above order if total lasting has to be completed within 15 days
normal working hours by using 3 lasting lines. Calculate tooling cost per pair
in this case also. If the cost of one pair last is Rs. 650.
Q.12.If a shoe factory receives an export order of 3000 pairs for a style Pluto (ankle
boot).
There is only one conveyor line working on day first.
Suppose total working days are 25 in every month and wages has been decided by the
management as below mentioned:
Skilled machine operator per month =Rs.6000
Semi-skilled machine operator per month = Rs. 4000
Helper per month = Rs. 3000
If day first there are
10 skilled machine operator,
8 Semi skilled machine operators
& 12 helper are taken by the closing in charge.
For this style total output achieved 200 pairs after completion of day one production
given on a single closing conveyor line.
Then calculate
 Labour cost per pair for style Pluto for closing department for day one.
 If next day there are two more conveyor lines are started for the same style
and
The detail of type of labours, total outputs are observed as below mentioned
for various lines:

CONTROLLED
Conveyor Conveyor Labour type Total number
total output of labours
( in pairs)
1 200 Skilled m/c operators 10
Semi-skilled m/c 8
operator
Helper 12
Semi-skilled m/c 9
operator
Helper 12
Semi-skilled m/c 10
operator
Helper 12
 Calculate labour cost per pair for closing department for day 2.

CONTROLLED

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DEPARTMENT FOOTWEAR

COURSE -B.Des. (Footwear Technology)

STUDENT LEARNING BOOKLET(SLB)

UNIT1: Basic Cost Concepts and Management (Footwear)

Footwear Design & Development Institute

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 1

This learning guide will help you –

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 2

Major footwear manufacturing centers in India in various regions:

South: Chennai, Ambur, Ranipet etc.

East: Kolkata, Patna etc.

West: Mumbai, Surat etc.

The leading shoe manufacturers in India are:

1. Bata India Limited

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 3

About Top shoe brands in India

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 4

So accurate costing becomes very important in Export business. As a small difference

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 5

So importance of upper item becomes more in compare to remaining items

“An amount that has to be paid or given up in order to get something.”

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 6

Components of Total Cost

• Prime cost= (Direct material+ Direct labour +Direct Expenses)

• Prime cost is also called “Direct Cost”.

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 7

• Factory cost= (Prime costs + factory overheads)

• Factory cost is also named as “Works Cost”

Total costs: It consists costs of

• Total costs = ( Factory costs + Administrative overheads + Selling expenses +

Net Selling Price: It consists costs of

• Net Selling Price =(Total Costs + Profit or loss)

The substance from which the product is made is known as material.

It may be direct as well as indirect.

All materials which become an integral part of the finish product.

Some examples of direct materials are

Indirect material costs:

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 8

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 9

Fixed and Variable Overheads:

All the overheads can be classified into following two forms:

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 10

ii) Variable overheads:

• Repairs and maintenance

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 11

3. Make a list of all material used as per various departments like

6. Now write down per unit cost in front of respective columns.

8. Calculate Works Cost(Factory cost)= (Prime costs + factory overheads)

9. Now Calculate Total costs= (Factory costs+ +Administrative overheads+ Selling

i.e. Net Selling Price =(Total Costs + Profit or loss)

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 12

Bill of materials or BOM:

Bill of materials is the record of the materials used to construct a product.

It can include raw materials, sub-assemblies and supplies.

 This bill of materials can be kept as a record for a particular article.

One example of BOM has shown in next page.

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 13

FDDI/ B.Des. (FDPM)/ SLB/07042014 Page 14

1. Materials related to Cutting Department:

It is very important for a Costing Manager to know about shoe constructions

Units of measurement for leather are either sq.dm or sq. ft.

b. In-Sock: It can be divided in two types: