DENIM CONSUMPTION & COSTING

Hi Friends,

As per sequence i'v made Denim Consumption as below. you can understand it very easily. 

Example:

Suppose,

The Buyer “Metro-Tex” forwards a “Woven Denim Bottom” item order to you with the following specification.

Follow the below measurement chart.

	Actual Length in (inch)	Sewing Allowance	Measurement with Sewing Allowance
Total Length including Waist Height	46”	2”	48”
Waist Width	37”	2”	39”
HIP	43”	2”	45”
Thigh	20”	2”	22”
Bottom Width	14”	2”	16”
Back Pocket Length	8”	1”	9”
Back Pocket Width	7”	1”	8”
Belt Loop Length	1.5”	0.5”	2”
Belt Loop Width	0.5”	0.5”	1”
Pocket Bag Length	8”	1”	9”
Pocket Bag Width	7”	1”	8”

Now, determine the garments costing (on FOB) for the above order.

Solution:

Fabric width – 58”

(Here, the given fabric width is 58”, during sewing, we cannot use the edge of a fabric. So, all time we must exclude 1” from the given fabric width. So, now the fabric width is 58-1 = 57”)

Wastage – 10%

Let,

1. Fabric Cost per yds- $3.70
2. Printing Cost per dozen- $1.40
3. Embroidery Cost per dozen- $3.80
4. Accessories Cost per dozen- $1.70
5. Washing Cost per pcs- $2.00 so, washing cost per dozen is – ($2.00 × 12) = $24.00

Now, we have to calculate the fabric consumption for the above order.

1. Fabric consumption for the Body Parts:

Here, we will apply the following formula (Per dozen),

Now,

BodyWidth,= 1/2 Thigh with sewing allowance
= 22

Now, from equation (A), we get-

= 24.70yds per dozen………………………………………………… (B)

So, fabrics needed for the body parts is 24.70yds per dozen.

2. Fabric consumption for the Back Pocket (2pcs):

Here, we will apply the following formula (Per dozen),

= 1.68yds per dozen………………………………………………………………..(C)

So, fabrics needed for the back pocket is 1.68yds per dozen.

3. Fabric consumption for the Pocket Bag (2pcs):

Here, we will apply the following formula (Per dozen),
= 3.37yds per dozen……………………………………………… (D)

So, fabrics needed for the pocket bag is 3.37yds per dozen.

4. Fabric consumption for the Belt Loop (5pcs):

Here, we will apply the following formula (Per dozen),
= 0.12yds per dozen……………………………………………. (E)

So, fabrics needed for the belt loop is 0.12yds per dozen.

Now,

By adding the equation B, C, D and E we can achieve the total fabrics consumption for the above order (per dozen)-

= (B +C + D + E) yds per dozen
= (24.70 + 1.68 + 3.37 + 0.12) yds per dozen.
= 29.87yds per dozen.

So, total fabric consumption for the above order is 29.87yds per dozen.

As, fabric cost per yds is $3.70 then, total fabric cost per dozen is (29.87yds × $3.70) = $110.52

Now,

By adding all the following costs with total fabric cost, we will get the total FOB cost of garments per dozen.

Fabric cost per dozen ………………………… $110.52 ……………………. (H)
Printing Cost per dozen ………………………$1.40 ……………….………… (I)
Embroidery Cost per dozen ………………… $3.80 …………………………. (J)
Accessories Cost per dozen …………………..$1.70 …………….…………… (K)
Washing cost per dozen ……………………… $24.00………………………… (L)
Cost of making (CM)…………………………… $5.00 …………..…………….. (M)
Commercial cost ………………………….……. $0.60 ………………………….. (N)
Others cost ………………………………….……. $0.20 ………………………….. (O)

So,

Total FOB cost per dozen = (H + I + J + K + L+ M + N + O)
= $ (110.52 + 1.40 + 3.80 + 1.70 + 24.00 + 5.00 + 0.60 + 0.20)
= $147.22 per dozen.

In case of factory, we received the order from a buying hose (Here, we got the order from Metro-Tex Buying House), so we have to pay 7%commission to them for that order.

So, in this situation, total FOB cost per dozen stands at-
= $147.22 per dozen + 7% commission
= $157.53 per dozen.

In factory costing, profit% for the factory (here-10%) should be added with total FOB cost per dozen.

So,

Total FOB cost per dozen with profit% stands at-
=$157.53 + 10% profit
= $173.28

Now, total FOB cost per pcs is ($173.28 / 12) = $14.44

So, factory cost (FOB) per pcs garment is $14.44

Though, this type of article is too long but easy to understand than short-cut method. Hope it will be effective for you.