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Costing For calculating the cost of the fabric / product, we should have the knowledge of pre-production & production

of the fabric / product. There are 2 types of costing, 1. Direct Cost a. Direct material cost b. Direct labour cost 2. Indirect cost a. Fixed over heads b. Variable over heads c. Other expenses Direct cost Direct material cost: This includes fabric & other raw materials like threads, button & other trimmings. Direct labour cost: This includes the cost of the labour for production of the products like cutting, sewing, finishing, packing, etc…. Indirect cost Fixed over heads: The fixed expenditure required to run the organizations smoothly. They are as follows, • Rent of the building • Rates payable to local authorities • Insurance charges for factory & machinery • Depreciation charges for building & machinery • Salaries for managerial people • Interest on capital Variable over heads: It changes as per the rate of production and product style. Example – Energy of all kinds, maintenance, well fair, supervisory expenses, stationery, postage & telephones. Other expenses: These expenses are required in co-ordination with other departments. Example – Administration expenses, marketing, distribution, purchasing. Besides the above expenses some more charges for transport material are added but they depend up on the agreement between the buyers & sellers like FOB, C&F, and CIF. Profit: Finally we have added the profit percentage. It is depends up on the organization, product style and order quantity.

4997} / {warp count x 10000} Weft weight (g / weft length) = {PPI x Width x Length x (weft crimp+100) x 1.9144 x 2.54} / {weft count x 10000 x 840 x 0. Include the yarn price 2.205 x 10 ̄ ³} Simplified Formula: Warp weight (g / warp length) = {EPI x Width x Length x (warp crimp+100) x 1. Fabric length in Inch 5.4997} / {weft count x 10000} Adding percentages: Net fabric cost = (fabric manufacturing cost x profit %) + fabric manufacturing cost Example – 1 .1 To get the fabric first we should find the weight of the fabric.9144 x 2. Include the processing cost (Bleaching/Dyeing/Printing/Finishing) Part – 4 1. Warp Crimp % 8. 1. Weft Crimp % Part – 2 Shrinkage and waste percentage should be included in to the weight of the fabric. Warp Count (Ne) 6. Include the weaving cost 3.Fabric Costing Part . Picks per Inch (PPI) 3. Weft Count (Ne) 7. Fabric Width in Inch 4. Part – 3 1. Include profit % Formula: Fabric weight = warp weight + weft weight Warp weight (g) = {EPI x Width x Length x (warp crimp+100) x 2. Include overhead % 2. To find out the fabric weight the following particulars must be needed. Ends per Inch (EPI) 2.205 x 10 ̄ ³} Weft weight (g) = {PPI x Width x Length x (weft crimp+100) x 2.54} / {warp count x 10000 x 840 x 0.

4997} / {40x10000} Weft weight = 17908181.31 / 400000 Warp weight = 81.121 + 44. Fabric width – 1 metre (39.891 GSM Example – 2 .37 Inch) Formula: Warp weight (g / metre) = {EPI x Width x Length x (warp crimp+100) x 1. PPI – 72 . EPI – 132.4997} / {weft count x 10000} Weft weight = {72 x 39.82 / 400000 Weft weight = 44.(2) Therefore Fabric weight (GSM) = warp weight + weft weight Fabric weight (GSM) = 81.(1) Weft weight (g / metre) = {PPI x Width x Length x (weft crimp+100) x 1. Find out the GSM of the fabric.37 x 104 x 1. Warp count – 40s .770 g / m ------------------------.With white background.37 x 39.4997} / {40 x 10000} Warp weight = 32448354. Warp count – 40s. the floral printed bed sheet has poplin fabric and the fabric has the following particulars.121 g / m -----------------------. Weft crimp – 7%. Answer: Given Data: Ends per Inch – 132 . Picks per Inch – 72.4997} / {warp count x 10000} Warp weight = {132 x 39. Warp crimp – 4%. Warp Crimp – 4%. Fabric length – 1 metre (39. Weft crimp – 7%.37 x 107 x 1.37 x 39.37 Inch). Weft count – 40s.770 Fabric weight = 125. Weft count – 40s.

170.891 gsm i. Consider the overall manufacturing waste is 5% and the fabric shrinkage is 6%.00 Rs.66 Rs. Over heads and profit is 10 % each.97 Rs. after that only we have to add profit % 3. 23. 40s yarn price per kg is Rs. 5.87 Rs.170 per kg -----(1) Weaving cost ----------------------(2) Bleaching cost ---------------------(3) Printing cost ------------------------(4) Total material cost (add 1-2-3-4) Add Over head cost @ 10% Add profit @ 10 % Net Fabric Cost per metre 0. 20. Example -3 . so we should not consider dyeing cost. First we have to add shrinkage %. 40.00 Rs.97 Rs.e 0.126 kg per square metre.00 Rs. Like that first we have to add overhead % .Find the fabric price / metre for the above mentioned fabric (example 1) with the following particulars. Given fabric is white background.134 kg Add waste @ 5% 0. Particulars Weight Price Fabric weight 0.88.66 Note: 1. Bleaching cost per metre is Rs.141 kg Total yarn requirement is 0.141 x 170 = Rs.107. 40. 5.126 kg Add shrinkage @ 6% 0. 35. Answer: As per the example – 1 fabric weight is 125. after that only we have to add waste % 2. Printing cost per metre is Rs. weaving cost per metre is Rs. 97. 20. 107.141kg Yarn Price @ Rs. dyeing cost per metre is Rs.

The plain coral colour curtain is used as kitchen linen and it has finished with the flame-retardant finish. special finishing cost per metre is Rs. Weft crimp – 8%. Fabric length – 1 metre (39. Warp count – 2/40s .170.73 + 60.e fabric weight is 0. Over heads cost is 10 % and profit is 15 % .4997} / {40x10000} Weft weight = 24040024. PPI – 65 . 4.4997} / {20 x 10000} --. Bleaching cost per metre is Rs. 50.83 / 400000 Weft weight = 60.37 Inch) Formula: Warp weight (g / metre) = {EPI x Width x Length x (warp crimp+100) x 1. Fabric particulars: EPI – 90. 20. weaving cost per metre is Rs.219 kg . Particulars Fabric weight Warp Weight 0. Answer: Given Data: Ends per Inch – 90 .2/40s resultant count is 20s Warp weight = 31745161 / 200000 Warp weight = 158.37 x 108 x 1.83 g i.10 Fabric weight = 218. Fabric width – 58 Inch . Warp count –2/40s. Weft count – 40s. Find out the Fabric cost per metre.(A) Weft weight (g / metre) = {PPI x Width x Length x (weft crimp+100) x 1.159 kg Weft Weight 0. Consider the overall manufacturing waste is 8% and the fabric shrinkage is 5%. Weft count – 40s.060 kg Price .10 g / m ------------------------.37 x 103 x 1.140. dyeing cost per metre is Rs. The fabric particulars and manufacturing cost has given below. Fabric width – 58 Inch.4997} / {weft count x 10000} Weft weight = {65 x 58 x 39. Weft crimp – 8%. Warp Crimp – 3%. Picks per Inch – 65.(B) Therefore Fabric weight = warp weight + weft weight Fabric weight = 158. 30.73 g / m ------------------.4997} / {warp count x 10000} Warp weight = {90 x 58 x 39. Warp crimp – 3%. Manufacturing cost: 40s yarn price per kg is Rs. 2/40s yarn price per kg is Rs.

00 Rs. 36. 30.152.120.00 Rs.180 x 140 = Rs.56 Rs. so we should not consider bleaching cost. 11.76 Rs. 25. Given fabric is plain dyed fabric .Add shrinkage @ 5% Add waste @ 8% Warp yarn price @ Rs 140 per kg Weft yarn price @ Rs 170 per kg Total Yarn cost --------------------(1) Weaving cost ----------------------(2) Dyeing cost ------------------------(3) Finishing cost----------------------(4) Total material cost (add 1-2-3-4) Add Over head cost @ 10% Add profit @ 15 % Net Fabric Cost per metre 0.76 Rs.77 Rs.068 kg 0. 04.180 kg 0. Like that first we have to add overhead % . after that only we have to add waste % 2.00 Rs. Product Costing .063 kg 0.20 0.068 x 170 = Rs.132.167 kg 0.77 Note: 1.152. 50. after that only we have to add profit % 3.84 Rs. First we have to add shrinkage %.

Over heads 6. buttons. Material Cost (Generally materials are like. Value added cost (Washing. zippers. Printing.) 5. sewing. hangtags. etc…) 2. lining. stickers.) 4. labels. Embroidery. etc) 3. Garment Dyeing. packing. finishing. Making cost (cost of labour for cutting. poly bag. Buying agent commission 7. etc…. threads. Packing cost (Generally packing materials are like. Profit Example – 1 . etc…. fabric. carton box.1.

50 Rs. If any changes happen in this sequence then costing might be wrong. 2. 4.5 = 2.of buttons used in the product is 5 and its unit price is Rs.0. 67. 77. 8.53 x 90 = Rs.20 Rs. packing cost is Rs. Find out the unit cost of the pillow cover. 90 per metre and its consumption is 70 cm for 44 inch width. 3. 8. Example – 2 .7 Rs.68 Rs. Other details are given below Making cost is Rs.5) Total Material Cost Add overall waste @ 4% Add overhead @ 15% Add Profit @ 15% Add agent commission @ 5% Net cost for the Pillow cover Price 0. Answer: Particulars Fabric cost 70 cm for 44 inch width Therefore For 58 inch consumption is 53cm (70 x44 ) / 58 = 53 Making cost Packing cost Labels and thread cost Button cost (5 x 0. labels and thread cost is Rs. 65. 47.00 Rs.16 Note: The correct sequence of the adding percentage is Waste. No.00 Rs.81 Rs. overall waste is 4%.00 Rs.The plain piece dyed pillow cover is made by the 58 inch width poplin fabric and the price of the fabric is Rs.16 Rs.94. overheads.98 Rs.5. 3. 4. Over heads and profit is 15% each and consider the buying agent commission is 5%. profit and commission. 94. 89.

After cutting the cut pieces are sending it to printing and embroidery. 15.The table cloth. 20. 160. Example – 3 The product specification and cost details are given below for the single bed quilt cover .00 Rs.95 Rs. 100 per metre. 6.65 Rs.00 Rs. 20. labels and thread cost is Rs.00 Rs. making cost is Rs. 5.55 Rs. Answer: Particulars Fabric cost ( 0.00 Rs.2 ) / 1000 Making cost Packing cost Labels and thread cost Total Material Cost Add overall waste @ 5% Add overhead @ 10% Add Profit @ 20% Net cost for the Table Cloth Price Rs.00 Rs. 5. overheads and profit. 139. 145. fabric consumption is 88 cm and the price of the fabric is Rs. . If any changes happen in this sequence then costing might be wrong. 5.65 Note: The correct sequence of the adding percentage is Waste.00 Rs.88 x 100) Printing cost Embroider cost (12500 x 1.00 Rs. 1. 88. other details are given below. the embroidery have 12500 stitches and cost per 1000 stitch is Rs. 192.192.2 . Workout the cost per piece of the quilt cover. Printing cost is Rs. 5. over head is 10 % and profit is 20% overall waste is 5% Find out the unit cost of the table cloth. 6. packing cost is Rs.

3 per inch Over all waste – 3% Overheads – 12% Profit – 15% Answer: Particulars Poplin Fabric cost ( 1. 45 & 1. warp crimp 3% weft crimp 4.25 x 95) Sheeting fabric cost (1. 327. 317.00 Rs.3 x 45) Embroider cost (115000 x 0. The zippers are used as closers. total number of stitches are 115000.50 Rs.5% find out the GSM. 95 & 1. 1.3 m Embroidery cost – Rs 0. Top side all over embroidered poplin fabric has used and the bottom side piece dyed sheeting fabric has used.Product specification: Size is 35 inch X 75 inch.54 Note: The correct sequence of the adding percentage is Waste. Making cost – Rs.The floral printed with white background cambric has the following particulars.9 ) / 1000 Making cost Packing cost Labels and thread cost Total Material Cost Add overall waste @ 3% Add overhead @ 12% Add Profit @ 15% Net cost for the Quilt cover Price Rs. 8 Zipper cost – Rs. 58. 103.56 Rs.75 Rs. overheads and profit. 8. 7 Labels and thread cost – Rs.00 Rs.9 per 1000 stitches. 132x72.00 Rs. Cost details: Poplin fabric price & consumption – Rs. 22. .50 Rs.75 Rs.54 Rs. 366. 7.28 Rs. 40sx40s.22 Packing cost – Rs. 118.25 m Sheeting fabric price & Consumption – Rs. If any changes happen in this sequence then costing might be wrong. 421. 421.