Professional Documents
Culture Documents
GARMENT INDUSTRY
Done by
R.Mahendiran,B.Tech,M.B.A
Angel Alumini
Kovego Clothing Industry
Tirupur
Introduction
In order to achieve perfect garment
costing, we must know about all the
activities including raw materials,
processing techniques, purchase of
Accessories, sewing, packing,
transport, overheads, etc and also
about their costs, procedures,
advantages and risk factors.
Contd.,
Costing is the deciding factor for
fixing of prices and the important
thing to follow in all stages like
purchase, production, marketing,
sales, etc.
FACTORS TO BE CONSIDERED
Costing includes all the activities like
purchase of fabrics and accessories,
processing and finishing of fabrics,
sewing and packing of garments,
transport and conveyance, shipping,
over heads, banking charges and
commissions, etc.
LADIES
JACKET
BRUSHED
FLEECE
074EF1Y072 Country
Buyer:
WALLMART
GSM
260
USA
FRENCH
Fabric
TERRY
Fabric Costing
Particulars
Yarn Price
Knitting charges
Details
Per Kg
Per Kg
Amount
(INR)
250
15
Per Kg
10.00%
265
100
36.5
8
409.5
5.00%
12.5
422
Garment costing
500
Cutting:
Stitching:
40
Finishing:
6.5
Packaging:
4.5
Embellishment
54.5
Trims
Sub Total
211
40
148.5
359.5
Packing materials
Tissue
0.1
Board
1.5
Hanger
0.2
H/tag
1.5
Poly bag
1.5
1/10
1.5
0.2
Total
6.5
Carton
Label logo
Embellishment
Embroidery/appliqu
20
Printing
Lace
0.5 Mtr
12.5
Crochet lace
0.2 Mtr
17
Total
54.5
Trims
Consumptio
Particulars
n
Amount (INR)
M/label
1
1
W/care
1
0.5
Tag
1
0.5
Thread
10 Mtr
2
Twill tape
12 cm
1.5
Mobilon tape
30 cm
0.5
Zipper
1
30
Patch label
1
2
Button
1
2
Total
40
Sub Total
359.5
Overhead cost
20.00%
71.9
Margin (after
overhead)
10.00%
35.95
3.00%
10.79
Ratio/Rejection
Rate: 50.00
478.14
$
9.55
Overhead Cost
Costs those are not directly related to
production volume.
These are fixed expenses or indirect
cost required to operate a business.
For example rent of the factory
building, administration cost etc.
Contd.,
Transport expenses
Expenses on consumables (Diesel,
Chemicals for finishing department)
Administration cost (salary and travel
cost for the managers, CEOs and
VPs),
Employee welfare expenses
Contd.,
Employee welfare expenses
Stationary & printing (indirect
material cost)
Professional and Legal expenses
Pantry expenses
House keeping
Overtime expenses etc.