8/9/2019 Costing Techiniques in Garment Industry

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COSTING TECHINIQUES IN

GARMENT INDUSTRY

Done by

R.Mahendiran,B.Tech,M.B.AAngel Alumini

Kovego Clothing Industry

Tirupur

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Introduction

In order to achieve per!ect garmentcosting, "e must #no" about all the

activities including ra" materials,processing techni$ues, purchase o!Accessories, se"ing, pac#ing,

transport, overheads, etc and alsoabout their costs, procedures,advantages and ris# !actors.

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Contd.,

Costing is the deciding !actor !or!i%ing o! prices and the important

thing to !ollo" in all stages li#epurchase, production, mar#eting,sales, etc.

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FACTORS TO BE CONSIDERED

Costing includes all the activities li#epurchase o! !abrics and accessories,

processing and !inishing o! !abrics,se"ing and pac#ing o! garments,transport and conveyance, shipping,

over heads, ban#ing charges andcommissions, etc.

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Garmnt Co!tin" S#t

COST SHEET

ProductLADIES

JACKET

BRUSHED

FLEECEStyle no: 074EF1Y072 Country USA

Buyer: WALLMARTF!r"c FRE#C$TERRY

%SM 2&0

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Fabric Costing

Particulars DtailsA!ount

"I#R$

Yrn Pr"ce Per '( 2*0

'n"tt"n( c+r(e, Per '( 1*

%rig Fabric Cost Pr Kg &'(

A-er(e dye"n( co,t 100

We"(+t lo,, on dyed .!r"c: 10/00 &/*

Fleece !ru,+"n( 3Su! totl )*+,(

ntere,t on yrn 5r"ce, */00 12/*

D-. Fabric Cost/ )&&

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%ar!nt costing

A-(/ F!r"c Con,u65t"on(r68 *00 &00

C1TP C2args

Cutt"n(:

0)3,(

St"tc+"n(: 40

F"n",+"n(: &/*

Pc9("n(: 4/*

E6!ell",+6ent *4/*

Tr"6, 40

Sub Total 4(+,(

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Pac5ing !atrials

T",,ue 1 0/1

Bord 1 1/*

$n(er 1 0/2

$t( 1 1/*

Poly !( 1 1/*

Crton 110 1/*

L!el lo(o 2 0/2

Total ',(

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E!bllis2!nt

E6!ro"dery55l";u< 1 20

Pr"nt"n( 1 *

Lce 0/* Mtr 12/*

Croc+et lce 0/2 Mtr 17

Total (),(

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Tri!s

Particulars Consu!6tion A!ount "I#R$

Ml!el 1 1Wcre 1 0/*

T( 1 0/*T+red 10 Mtr 2

T="ll t5e 12 c6 1/*Mo!"lon t5e 0 c6 0/*

>"55er 1 0Ptc+ l!el 1 2

Button 1 2

Total )*

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Sub Total 4(+,(

?-er+ed co,t 20/00 71/@

Mr("n .ter

o-er+ed8 10/00 */@*Ratio7R8ction /00 0*,9+

Total 6ric o: a a66arl )93,0)

Fob 6rics/ US; Rat/ (*,**;+,((

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Overhead Cost

Costs those are not directly related toproduction volume.

These are !i%ed e%penses or indirectcost re$uired to operate a business.

&or e%ample rent o! the !actorybuilding, administration cost etc.

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Costs Are Included Under Overhead

'ist o! overheads may vary !actory to!actory based on organi(ationstructure.

Building rent

)alary o! the sta!!s and associatepayroll costs

*lectricity Bills

+tilities -hone bill, internet bills

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Contd.,

Transport e%penses

*%penses on consumables Diesel,

Chemicals !or !inishing departmentAdministration cost salary and travelcost !or the managers, C*/s and

0-s, *mployee "el!are e%penses

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Contd.,

*mployee "el!are e%penses

)tationary 1 printing indirect

material cost -ro!essional and 'egal e%penses

-antry e%penses

2ouse #eeping /vertime e%penses etc.

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$ET SEE ANOTHER S$IDE..%%

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