Costing is an important issue for textile and apparel industry. Without proper costing calculation of your product, you will not be able to offer the best price to customers. In this article, our topic is weaving and knitting production cost calculation. We know that, fabrics are produced mainly by **weaving and knitting technique**. Technical parameters of knitting calculation are complicated and difficult than weaving calculation.

Knitting and weaving cost is under of process cost calculation. The fabrication process involves various processes like knitting or weaving, **scouring**, bleaching, dyeing, finishing treatments, etc. When the yarn is sourced and converted into fabric, during the costing process to estimate fabric cost, we have to add all the cost of processes that the fabric undergoes. The final fabric cost I mean weaving and knitting cost will be the cost of the yarn along with the summation of process cost of the fabric.

Costing of knitted and woven grey and colored fabric varies to a wide range depending on **yarn count**, quality of yarn, **GSM of fabric**, fabric structure, use of dye type and quality, dyed shade, and also on dyeing and finishing machines used.

**Factors to Estimate Weaving and Knitting Cost:**

- Total number of machines used
- Number of shifts per day
- Production capacity of the plant or individual machine / shift or day
- Yarn quantity used
- Waste percentage
- Number of operators and helpers
- Operator wages
- Other expenditures.
- For calculating the cost of any process, the above mentioned data are necessary.

**The following examples details the cost calculation of weaving and knitting process:**

**Example 1:**

A company developed single jersey cotton fabric for the kids wear garment. The company sourced 2000 kg of yarn and the price of the yarn is Tk. 240 / kg. The knitting industry works with 5 weft knitting machine with the production capacity of 85 kg / machine. The average waste percentage expected during the operation is 3%. The company works with 5 operators and 2 helpers with the wage of Tk. 250 and Tk. 150 per shift, respectively. Calculate the cost of knitting process per kilogram with 20% profit if the company spends Tk. 5000 / month for rent, Tk. 3000 / month for electricity and Tk.15,000 / month as other expenses. Assume company works 26 days per month.

**Solution:**

**Step 1: Number of shifts required to complete the order.**

**Total production per day** = Average machine production × Number of machines

= 85 × 5 = 425 kg / shift

**The wastage percentage expected** = 3%

Hence, 2000 kg – (3% of 2000 kg) = the original quantity produced

= 2000 – (2000 x 3/100)

= 1940 kg

………………………………………………………………..Total yarn quantity

**Total number of shifts required** = ———————————————————-

…………………………………………………………Production capacity per shift

…..2000

= —————

……425

= 4.7 shifts

**Step 2: Calculate total labor cost**

The labor cost = No. of labors × No. of shifts worked to complete order × Wages/shift

= Cost of operators + Cost of helpers

= (5 ×4.7× 250) + (2 ×4.7× 150) = Tk. 5875 + Tk.1410 = Tk. 7285

**Step 3: Calculation of direct material cost**

Yarn purchased = 2000 kg with the price of Tk. 240 / kg

= 2000 × 240 = Tk. 4,80,000

**Step 4: Calculation of overheads**

Company spends all these overheads per month (26 days). Since, the company works one shift per day, The 1 day or 1 shift expense as overhead is as follows,

………………………5000 + 3000 + 15,000

**Overheads** = —————————————-

……………………………………26

= Tk. 884.61

Since, the company works 4.7 shifts for this order,

= 884.61 × 4.7 shifts = Tk. 4157.69

**Step 5: The overall cost of the knitting process**

………………………………………………………..Material cost + Labor cost + Overheads

**The total knitted fabric cost / kg** = ————————————————————————–

…………………………………………………………………………Total production

……………………………4,80,000 + 7285 + 4157.69

**Fabric cost / kg** = ——————————————-

……………………………………………1940

= Tk. 253.32

……………………………….Labor cost Overheads

**Knitting cost / kg** = —————————————-

…………………………………..Total production

….7285 + 4157.69

= ——————————-

…………1940

= Tk. 5.89

**Knitting rate / kg** = 5.89 × 20% profit= 5.89 + (5.89× 20/100) = Tk. 7.07

**Example 2:**

A weaving unit with auto looms received an order to produce 40,000 meters of plain woven fabric. The loom shed consist of 36 looms with the capacity of 230 rpm. The company works with 20 weavers, 3 helpers with the salary of Tk.400 / shift and Tk.300 /shift, respectively. The shed is maintained by two supervisors with the salary of Tk. 20,000 per month. If the company works with 75% efficiency and produces fabric with averagely 70 picks per inch, calculate the cost of weaving process per meter with 20% profit. The overhead details are, Tk. 3,00,000 / month for power, Tk. 1,50,000 / month for other staff salary, oil and other consumables Tk.50,000 / month. Spares and other parts Tk. 1,00,000/month and Tk. 25,000 / month knotting cost and Tk. 3,50,000 as other expenses and bank interest due. Assume company works 26 days per month and three shifts per day.

**Solution:**

**Step 1: Number of shifts required to complete the order.**

The total production need to be done = 40,000 meters

Hence, the daily production of the shed can be calculated as follows,

……………………………………………………….RPM

**Production per machine** = ————————————- × 60 (min/r) × 24 (w. hrs/day)

…………………………. ………………Picks per inch × 39.37

……….230

= —————— × 60 × 24

….70× 39.37

= 120.178 meters / machine / day at 100% efficiency

**Production at 75% efficiency** = 120.178 × 0.75

= 90.133 meters/machine/day

Total production / day = 36 × 90.133 = 3244.82 meters / day.

Hence, to complete the current order,

…………………………………………………………………..Order quantity

**The total number of days required is** = ———————————

…………………………………………………………….. …Daily production

…..40,000

= ———————

…3244.82

= 12.33 days

As company works 3 shifts / day, total number of shifts are = 12.33× 3 = 36.98 shifts

**Step 2: Labor cost**

The number of labors used are, 20 machine operators/ weavers with the wage of Tk. 400/shift, 3 machine helper with the wage of Tk. 300/shift and 2 supervisors with the salary of Tk. 20,000 / month.

……………………………………………….20,000

The supervisor wage per day = —————— = Tk.769.23.

…………………………………………………..26

Hence, the total labor cost is

= (Number of labors × Total working shifts ×Wages per shift)

= (20 ×36.98× 400) + (3 ×36.98× 300) + (2× 769.23 × 12.33)

= 2,95,840+ 33,282+18,969.21 = 3,48,091.21

**Labour cost** = Tk. 3,48,091.21.

*Note: Here, the supervisor alone works in a monthly salary basis, hence, for them the number of days is considered for cost calculation instead of shifts.

**Step 3: Overhead charges**

Tk. 3,00,000 / month for power

Tk. 1,50,000 / month for other staff salary

Tk.50,000 / month for oil and other consumables

Tk. 1,00,000/ month for spares and other parts

Tk. 25,000 / month as knotting cost

Tk.3,50,000 / month as other expenses

Total expenses = Tk. 9,75,000

……………………………………………………………………………………………..9,75,000

Since, the factory works 26 days in a month, the daily OH is = —————————

………………………………………………………………………………………………….26

= 37,500

**Total working days** = 37,500 × 12.33 = Tk. 4,62,375

**Step 4: Total weaving cost**

Total cost = labor cost + overheads = Tk. 3,48,091.21 + Tk.4,62,375

= Tk. 8,10,466.21

…………………………………………………..8,10, 466.21

**Hence, weaving cost / meter** = ———————–

………………………………………………………40,000

= Tk. 20.26/ meter.

**Weaving cost with 20% profit** = 20.26 + (20.26× 20/100)

= Tk. 24.31 / meter fabric.

**Example 3:**

A weaving unit with auto looms consists of 52 looms with the capacity of 245 rpm. The company works with 90% efficiency and produces fabric with averagely 70 picks per inch, calculate the cost of a pick with 20% profit. Company works with 40 weavers and 10 helpers with the wage of Tk.350 and Tk.250/shift, respectively. The overhead details are, Tk. 5,00,000/month for power, Tk. 2,75,000/month for other staff salary, oil and other consumables Tk.1,50,000/month. Spares and other parts Tk. 2,50,000/month, Tk. 50,000/ month as knotting cost and Tk.5,00,000/month as other expenses like bank interest dues and etc. Assume company works 30 days a month and 3 shifts per day.

**Solution:**

**Step 4: Total production**

………………………………………………………..RPM

**Production per machine =** ————————————- × 60 (min/hr) × 24 (w. hrs/day)

…………………………………. ……….Picks per inch × 39.37

………245

= ———————- × 60 × 24

…70 × 39.37

= 128.01 meters / machine / day at 100% efficiency

**Production at 90% efficiency** = 128.01 × 0.9 = 115.21 meters / machine / day

Total production / day = 52 × 115.21 = 5991.16 meters /day.

Since company works 30 days in a month, the total production is,

= 5991.16 meters /day × 30 = 1,79,734.82 meters.

**Step 2: Labor cost**

The number of labors used are, 40 machine operators/ weavers with the wage of Tk. 350 /shift, 10 machine helper with the wage of Tk. 250/shift.

Hence, the total labor cost is

= (Number of labors × Total working shifts ×Wages per shift)

= (40 × (3 ×30) × 350) + (10 × (30 ×3) × 250)

= 12,60,000 + 2,25,000 = 14,85,000

**Labour cost =** Tk. 14,85,000.

**Step 3: Overhead charges**

Tk. 5,00,000 / month for power,

Tk. 2,75,000 / month for other staff salary,

Tk. 1,50,000 / month for oil and other consumables

Tk. 2,50,000/ month for spares and other parts

Tk. 50,000 / month as noting cost

Tk.50,000 / monthas other expenses

Total expenses = Tk. 12,75,000.

**Step 4: Total weaving cost**

Total cost = labor cost + overheads = Tk. 14,85,000 + Tk. 12,75,000

= Tk. 27,60,000

……………………………………………….27,60,000

Hence, waving cost / meter = —————————–

………………………………………………17,9734.82

= Tk. 15.36 / meter

………………………Fabric cost per meter

So, pick rate = ——————————————–

…………………………………PPI

…15.36

= ————-

…..70

= Tk. 0.219/ inch

**Pick cost with 20% profit =** (0.219 + (0.29 × 20/100)) = Tk. 0.26.

If we consider the above-mentioned example, after calculating the cost of a single pick, from that we can derive the cost of the woven fabric per meter.

**The details are as follows:**

**Solution:**

The cost of the fabric per meter = Fabric width × cost of pick

If we assume the fabric (loom) width is 56” then the cost of the fabric is,

= 56 × 0.26 = Tk.14.56 / meter.

**References:**

- Apparel Merchandising by R. Rathinamoorthy and R. Surjit
- Textile Calculation by Engr. AKM Fazlul Haque
- https://textilelearner.net/different-formula-of-textile-calculation/
- https://www.textilecalculations.com/calculate-knit-fabric-costing/
- https://www.textilecalculations.com/different-formulas-of-weaving-calculation/

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Founder & Editor of Textile Learner. He is a Textile Consultant, Blogger & Entrepreneur. He is working as a textile consultant in several local and international companies. He is also a contributor of Wikipedia.