🧾 Garments Cost of Making (CM): Overview

🧾 Garments Cost of Making (CM): Overview

In the garment manufacturing industry, CM (Cost of Making) refers to the cost incurred to manufacture one garment, excluding the cost of fabric and trims. It includes all fixed and variable expenses related to factory operations.

CM is crucial for:
• Determining the selling price
• Controlling production costs
• Maximizing profit

⸻

🔢 Formula for Monthly Garments Cost of Making (CM)

CM per piece =

{Monthly Total Factory Cost (Fixed + Variable)}÷
{Monthly Total Production (pieces)}

⸻

✅ Example 1: Standard Method

Given:

Particulars Amount (BDT)
⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻
Salary & Wages 20,000,000
Bank Loan Interest 100,000
Depreciation 50,000
Building Rent 200,000
Transportation Cost 150,000
Repair & Maintenance 50,000
Utility Expenses (Total) 1,000,000
⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻
Total Monthly Cost 21,550,000

Production Details:

Particular Value
⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻
No. of Machines 150
Hourly Capacity (per machine) 30 pieces
Working Hours per Day 8 hours
Working Days per Month 26 days
⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻
Total Monthly Production 936,000 pieces
{150 × 30 × 8 × 26}

Calculation:

CM per piece
= {21,550,000}÷{936,000}
= {Tk. 23.02}

⸻

✅ Example 2: Effective Method (SMV-based)

Factory & Production Setup:

Particulars Value
⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻
Total No. of Machines 180
No. of Workers 200
Working Hours/Day 8
Working Days/Month 26
Efficiency Level 65%
SMV per Garment (Trouser) 35 minutes

Step 1: Available Minutes (monthly)

= 200 × 8 × 26 × 60 × 65% = 1,622,400 minutes

Factory Cost Breakdown:

Cost Item Monthly Cost Cost per Minute (Tk.) (Tk.)
⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻
Salary & Wages 4,000,000 2.47
Interest 100,000 0.06
Depreciation 50,000 0.03
Rent 200,000 0.12
Transportation 150,000 0.09
Repair &
Maintenance 50,000 0.03
Utilities 1,000,000 0.62
⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻
Total Per Minute Cost — 3.42

Step 2: Calculate CM for Trouser

{CM} = 35 minutes × 3.42Tk/minute
={Tk. 119.70}

⸻

✅ Example 3: Sewing Line CM Calculation

Given:

Particulars Value
⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻ ⸻
No. of Operators 30
No. of Helpers 5
Avg. Operator Salary Tk. 10,000
Avg. Helper Salary Tk. 8,000
Working Days 26
Working Hours/Day 8

Step 1: Salary Expense

= (30 × 10,000) + (5 × 8,000) = 340,000 Tk/month

Step 2: Available Minutes per Month

= (30 + 5) × 8 × 60 × 26 = 436,800 minutes

Step 3: Cost per Minute

={340,000}÷{436,800} = 0.78 Tk/minute

Step 4: CM for a Garment (SMV = 45 min)

= 0.78 × 45 ={Tk. 35.10}

⸻

✅ Summary Table

Method CM per Piece (Tk.)
Standard Factory Method 23.02
Effective (SMV-Based) 119.70
Sewing Line Specific 35.10

Note: All these costing information is arbitrarily taken, so these values are not actual costing value.