How to calculate sweater costing in garments industry?

Costing is very important part for ready-made garments sector. In garments merchandising, costing is the main process among all the others processes. If garments merchandiser can contract a perfect costing of an order then all the remaining processes will be easy to complete. A perfect costing can increase of a business.

Sweater don’t have solid or finished fabric like as woven & knit item by linking one yarn with another the shape of the different parts of sweater is made. So, there is no such consumption formula for sweater like as woven & knit.

For costing of sweater, we need to make a sample first as per requirement style, measurement & weight. It is the wise to make the sample following middle size of buyer spec. Then weight that sweater & multiple the weights with 12 pcs to know the weight of per dozen sweaters. Then add wastage percentage (generally we calculate 10-20% wastage based on styling). Generally, we can see different types of gauge like as 3GG, 5GG, 7GG, 12 GG. After read this article you can easily understand costing of sweater.

For sweater costing we have to know below important points.

1. Weight of sweater sample.
2. Yarn Price.
3. Accessories Cost.
4. Print cost if any.
5. Embroidery cost if any.
6. CM (Cost of Making.)
7. Washing cost
8. Commercial Charge.
9. Profit

Given

1 .weight 200gm per gmts (2 ply)

2.Yarn: 100% Acrylic, 2/36s

3.Types of Gauges: 12 GG

First of all, we know that yarn cost formula is as below

Yarn cost=Yarn consumption in LBS +wastage X Yarn Price in Lbs.

And, also costing formula as below

Costing=(Yarn consumption in lbs+ wastage)X Yarn price in Lbs+ Accessories cost +Print cost+ embroidery cost+ CM+ washing cost + commercial charge+ profit.

We can assume per dozen price in the following.

1. Yarn price per Ibs=\$3.10
2. Accessories cost (zipper, Button, finishing) =\$4.00
3. Print cost per dozen=\$1.50
4. Embroidery cost per dozen=\$ 2.00
5. Cost of making (CM)=\$17.00
6. Washing cost per dozen=\$3.00
7. Commercial cost per dozen=\$1.00

Before costing we have to calculate yarn cost per dozen.

=(Yarn consumption in LBS +wastage) X Yarn Price in Lbs.

=200 gm per gmts (we assume 10%wastage)

=220 gm

Now we calculate per dozen

=220gm X12

=2640gm (We know 453.6gm=1Ibs)

=5.820 Ibs

Now, yarn cost per dozen as below

=5.820 IbsX\$3.10

=\$18.04

Now, we can calculate costing per dozen as below

Costing=yarn cost in Lbs+ Accessories cost +Print cost+ embroidery cost+ CM+ washing cost+ commercial charge

=\$18.04+\$4.00+\$1.50+\$2.00+\$17.00+\$3.00+\$1.00

=\$46.54

If we consider profit 10% then would be costing as below

=\$51.194

According to buyer confirmation shipment mode price will be changeable.

Here, we consider shipment mode is sea.

So, per dozen sweater costing FOB is ==\$51.194

If we consider per pc then will be sweater FOB=\$4.27

Md.Mahbub-Ul Islam

RMG Consultant & Researcher