Calculate Garment Costing

Garment Costing: How to Calculate Garment Cost using available Information

---

Question:  I am a merchandising management student, I want to know how to calculate the cost of a garment using following details.

1. Fabric consumption: 0.8 yards per garment.
2. Fabric wastage allowance 3%
3. Fabric price: $2.7per yard.
4. Total charges for insurance & fright $ 0.3 (per yard). Fabric is being ordered from Hong Kong.
5. Finance charges for fabric purchasing is 15%.
6. Trim cost: $ 1.5 per garment (excluding thread cost).
7. 5000 meter of thread cones being used for sewing, 210 meters of threads needed for a garment and the price of a thread cone is $6.
8. Garment SMV is 40.
9. Labor rate: the selling price of a minute is $ 0.03

Answer:

To calculate the cost of the garment, I will first create a table in excel sheet. Then I will calculate material cost and labor cost. Finally sum up all cost together to calculate total cost of the garment. In the following I have shown you step by step process for calculating cost of the garment using information provided on the above.

Step 1: Arrange information in the excel table, provided on the above problem. See the following table, where I have arranged all required information to find final garment cost. I have given code number to each information A, B, ...J.

I added extra rows where I need to calculate something to calculate sub costs and necessary information. Like M, N, O and P.  

Step 2: Calculate total fabric consumption including wastage percentage (M)
Total fabric consumption per garment = Calculated fabric consumption (1+Wastage%)
Or M=A(1+B)

Step 3: Calculate fabric cost per garment (N): Factory has incurred cost in insurance and freight and finance charge. I have calculated fabric related cost together. 

So, Fabric cost per garment (including freight and finance charge) = (M*(C+D))+(M*C*E)

Step 4: Trim cost: Total cost of the trims has been given.  

Step 5: Calculate thread cost (O): From the thread rate (unit 5000 meters) and thread consumption, thread cost per garment is calculated. 

Here thread cost per garment = G*H/5000

Step 6: Calculate labor cost per garment (P): Labor cost per garment is calculated using garment SMV (standard time) and labor cost per minute.

Labor cost per garment (P) = Garment SMV * Labor cost per minute

Step 7: Calculate total garment cost (GC):

I have calculated all sub costs required to find total garment cost. 

Total garment cost = (Fabric cost + Trim cost + Thread cost + Labor Cost)

Total garment cost = ($2.81 + $1.50 + $0.25 + $1.20) = $5.76

5 Things You Can Do to Achieve More

5 Things You Can Do to Achieve More on New Year

---

On the new year set your goal high to achieve more in your professional life as well as personal life. You will get the same 24 hours in a day but you need to accomplish more than yesteryear. How to achieve more is the question for everyone. Simply, to get more you have do more things than last year. Make this year remarkable by achieving your goals and set a new goal.

Following are the 5 Things that can help you to accomplish more than you did ever before.

1. Become a Pro
2. Use To-do List at work
3. Prioritize your work
4. Delegate work to subordinate
5. Set time limit to be spent on social networking sites

1. Become a Pro

People with Pro personality achieve more in less time and get recognized by others. Becoming  Pro means, be active, be prepared, be informed and quick response to others. It is not possible to know everything by a single person. But you can acquire maximum knowledge and information in your field of work. Learn everyday. Interact with your team members and other associated department to keep yourself updated.

Internet is good resource for learning whatever you need to learn. You can use Apps to manage your work, find tips to fix your problem(s) quickly. Learn from your seniors and colleagues, attend seminars and workshop on technical topics.

2. Use To-do List

To-do list is one of the most effective time management tool. To stay focused to your works and to complete tasks on time 'To-do list' is very useful. You wouldn't miss any meeting, appointment or important task. The simple way to use it -

• Make your To-do list for the day on everyday morning.
• Start working and complete listed tasks one by one and mark completed. 
• Add tasks to your To-do list as things come you during the day. 
• Keep your To-do list easy to access - keep it on your desk and carry you list with you. 
• Keep your list up-to-date and carry forward uncompleted task to next day.

3. Prioritize Your Tasks

Don't get overwhelmed with your To-do list. Prioritize your tasks in your To-do list. Complete urgent things first, then pick most difficult task and at last complete easy tasks. For the time consuming task, make a schedule for action and accomplish whole task part by part.

4. Delegate Work to Subordinates

You alone can't accomplish more than a team. If you have couple of subordinates, utilize their full potential. Keep yourself less involved in regular work. Explain things to your subordinates and give them responsibility. When you delegate work to others you will get more time for learning (knowledge acquiring) and working on new things.

5. Set Time Limit to be Spent on Social Networking Sites

Good amount time are spent on social networking sites. It has both pros and cons. Don't get addicted to social networking sites. Use social site for gaining knowledge and networking with friends and with professional group members. Make your schedule when you like to be online on social site. This way you can utilize your productive time on constructive work.

Now it is your turn to add something. How are you going to achieve more on the New Year?

Garment Costing

Garment Costing Template (Excel) for T-Shirt and Knitted Shorts

---

I found a very good work on Docstoc related to garment costing. And couldn't stop myself but sharing it with you.  This is very helpful tool for merchandisers and buyers. The costing template has been embedded in the following.

The garment costing template is made on Excel sheet. (Note: These templates are not available for free download). But that is not a problem. If you know how to use formula on Excel sheet you can make your own costing template by copying it. Refer this sheet for fabric consumption calculation and use cost parameters that applied to your business.

This calculation sheet explains how to reach fabric consumption for the product. What other costs to add to find garment cost. Other costs are trims cost, manufacturing cost, factory overheads etc. To reach final price (FOB) for buyers you need to add other factors like freight, buyers commission, commercial charges etc. You can calculate FOB per piece or FOB per Dozen.