SCAP | JURY ASSIGNMENT

COSTING
Riddhima Mishra Dishita Kaushik
Oorjita Sharma Mehul Sharma
TABLE OF CONTENTS
Introduction
About the Garment
Operation Breakdown
Cost Breakdown
Suppliers in India and China
 INTRODUCTION
Costing is any system for assigning costs to an element of a business. Costing is typically
used to develop costs for customers, distribution channels, employees, geographic regions,
products, product lines, processes, subsidiaries, and entire companies.

Cost Sheet is a statement, prepared at given intervals of time, which provides information
regarding elements of cost incurred in production. It discloses the total cost as well as the
cost per unit of the product manufactured during the given period.

If it is desired to compare the costing results of a particular period with any of the
preceding periods, comparative columns can be provided in the Cost Sheet. The cost sheet
is prepared to ascertain cost of product/job/operation or to give quotations or to determine
tender price for supply of goods or providing service.
ABOUT THE GARMENT
 ABOUT THE GARMENT
The garment is a plain weave,
cambric fabric with 140 GSM
and 60 fabric count.
The garment is 15 inches in
width and 24 inches in length.
The sleeves are 8 inches wide
and 19 inches in length.
The average fabric
consumption is 1.2 m.
 OPERATION BREAKDOWN
OPERATIONS ASSUMED TIME
1. Preparing the front placket with the darts. 4 min
2. Finishing the neckline. 4 min
3. Attaching the ruffle. 1 min
4. Attaching the back placket, shoulder and making the darts. 3 min
5. Attaching ruffle. 1 min
6. Preparing the sleeves. 4 min
7. Hemming the sleeves 2 min
8. Attaching the sleeves 2 min
9. Zipper & button attachment and seams 4 min
10. Sleeve seam finishing 3 min
11. Bottom Hem 2 min
Total time taken: 30 min
COST BREAKDOWN
As one garment is taking approximately 30 mins to prepare
including some extra time, if the employee is working for 8
hours, 16 garments will be prepared in a day.
- 8x2= 16
Assuming, the employee is being paid 500Rs, then the cost of
making one garment with respect to the salary being paid to the
employee will be;
- 500/16= 31.25, adding some extra to round it off to 40.
COST BREAKDOWN
There are 13 panels in this garment with 4 panels of embroidery
ones. As embroidery will be done in one space, we are cutting a
rectangle and counting it as the 10th panel. Let's assume a layer
can be put up in a minute. Then around 80 lays can be put up in
about 2 hours assuming the workers are working at an efficiency
of 60-70%.
- 1 lay = 10 pieces
-80 lays = 80x10= 800 pieces
Assuming,
300 pieces can be cut in an hour, then 2400 pieces can be cut in 8
hours.
Hence, if we are paying 1500 to the cutting master, then the cost
of laying one lay will be 0.625.
-1500/2400= 0.625
 COST BREAKDOWN
Let's round it off to 1 and take 1.5 as overhead cost.
Adding the cost of cutting one lay i.e., 2.5 to previous cost of the
garment according to the sewing department,
- 40+2.5= 42.5

Here, let's take the costs of ironing the garment, thread, and
finishing to be where 4 will be the cost of ironing and 2 will be the
cost of thread cutting.
The cost of washing will be 10 Rs. The cost of fabric will be 85 for
1.2 metres. Embroidary will cost 20Rs taking 2 Rs for 1000 stitches.
Label will cost 1 Rs, zipper will cost 7 Rs, 2 Rs for the polybag and
40 Rs for the elastic. Lace will cost us 26.8 Rs. The cost of thread is
20 Rs.
 COST BREAKDOWN
Thread consumption for one top is 16 Yd, as a cone of 600 Yd is of
750 Rs, 16 Yd will cost us around 20 Rs.

The consumption of elastic is 0.4 m, and we are getting 1m for 100

Rs. Here, we'll get 0.4m for 40 Rs.

The consumption of lace is 67.5 inches, when converted to

metrees it is 1.7 m. 10m lace costs us 134 Rs, so 2 m ( taking 0.3
extra) will cost us 26.8
 COST BREAKDOWN
Overhead cost: 15% of raw material cost + CM
15% of 180+CM
CM= Let the working days be 22, assuming Saturday sundays to be off.
22x8x60= 10560
For sewing,
500 Rs/ day, for 30 days the salary will be 15000 Rs.
For cutting,
1500 Rs/ day, for 30 days the salary will be 45000.

15000/10560 = 1.42
45000/10560= 4.26
Putting in the formula, 27+6.66= 33.33
 COST BREAKDOWN
8-10% of Raw materials + CM+ Overheads
CM= Let the working days be 22, assuming Saturday sundays to be off.
22x8x60= 10560
For sewing,
500 Rs/ day, for 30 days the salary will be 15000 Rs.
For cutting,
1500 Rs/ day, for 30 days the salary will be 45000.

15000/10560 = 1.42
45000/10560= 4.26
Taking 10% of the raw materials,
Putting in the formula, 18+6.66+33.33 = 57.99
 COST BREAKDOWN
Total: Total:
-Fabric : 85 -Cutting : 2.5
- Threaad: 20 - Sewing : 40
- Snap Button: 2 - Embroidery: 20
- Zipper : 7 - Ironing : 4
- Elastic: 40 - Thread cutting : 2
- Lace: 26.8 - Washing : 10
- Packaging bag: 2 - Overhead : 33.33
- Main label : 1 - Transportation : 25
- Care label : 1 - GST: 22.8
- Price Tag: 1
GRAND TOTAL: 403
SUPPLIERS IN INDIA AND CHINA
Cambric Fabric suppliers in India:
1.Raunak Enterprises(Basni, Jodhpur): Rs. 41/m
2.Virat Fabric Pvt. Ltd.(Saroli, Surat): Rs. 60/m
3.Durga Enterprises(Bhiwandi, Thane): Rs. 43/m
4.Mayank Export (Barmer, Rajasthan): Rs. 57/m
5.Meera Handicrafts (Jaipur): Rs. 48/m

Cambric Fabric suppliers in China:

1.Shijiazhuang Jiexiang Textile Co. Ltd (Hebei, China): Rs. 113.62/m
2.Wuhan Tian Hong Rui Trading Co. Ltd. (Hubei, China): Rs. 272.37/m
3.Tongling Richeng Textile Printing & Dyeing Co. Ltd. (Anhui, China): Rs. 147.86/m
4.Shaoxing Keqiao Mulinsen Knitting Co. Ltd. (Keqiao, China):
5.Shijizhuang Taihong Clothing Co. Ltd. (Hebei, China): Rs. 87.16/m
THANK YOU