Cost of Making

The cost which is paid for sewing and finishing of a garment is called Cost of Making (CM).
  1. Monthly total expenditure of factory with factory rent, commercial cost, electricity, water, transportation, repairing, worker staff wages (8hour per day).
Example: 5000000USD.
  1. Quantity of running machine of the factory of the following month (which total expenditure we have considered here).
Example: 100machines.
  1. Number of machine to complete the layout for the following item (which CM we are calculating).
Example: 25machines.
  1. Production capacity per hour. Example: 200pieces.
  2. Total working day of the following month. Example: 26days.
Formula of Cost of Making (Per Dozen):
CM= {Monthly total expenditure/26}/ (Quantity of running machine of factory of the following month)*(Number of machine to complete the layout)/ [{Production capacity per hour*8}]*12.


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