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    Sweater Costing Strategy

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    erabbi
    The document summarizes the various production costs for knitted sweaters, including: 1) Material costs such as yarn, dyeing, and blending which can be around $300 per dozen sweaters. 2) Knitting costs of around $200 per dozen from operating knitting machines and wages. 3) Linking, inspection, and washing costs of $100 per dozen. 4) Accessory costs like tags and packaging of $30 per dozen. The total production cost is around $630 per dozen sweaters before adding profit and quotas.

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    Sweater Costing Strategy

    Uploaded by

    erabbi
    402 views9 pages
    The document summarizes the various production costs for knitted sweaters, including: 1) Material costs such as yarn, dyeing, and blending which can be around $300 per dozen sweaters. 2) Knitting costs of around $200 per dozen from operating knitting machines and wages. 3) Linking, inspection, and washing costs of $100 per dozen. 4) Accessory costs like tags and packaging of $30 per dozen. The total production cost is around $630 per dozen sweaters before adding profit and quotas.

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    The document summarizes the various production costs for knitted sweaters, including: 1) Material costs such as yarn, dyeing, and blending which can be around $300 per dozen sweaters. 2) Knitting costs of around $200 per dozen from operating knitting machines and wages. 3) Linking, inspection, and washing costs of $100 per dozen. 4) Accessory costs like tags and packaging of $30 per dozen. The total production cost is around $630 per dozen sweaters before adding profit and quotas.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    402 views9 pages

    Sweater Costing Strategy

    Uploaded by

    erabbi
    The document summarizes the various production costs for knitted sweaters, including: 1) Material costs such as yarn, dyeing, and blending which can be around $300 per dozen sweaters. 2) Knitting costs of around $200 per dozen from operating knitting machines and wages. 3) Linking, inspection, and washing costs of $100 per dozen. 4) Accessory costs like tags and packaging of $30 per dozen. The total production cost is around $630 per dozen sweaters before adding profit and quotas.

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    Production Cost for knitted sweater

    Jimmy Lam Institute of Textiles & Clothing

    Learning Objectives
    Material cost Knitting cost Making cost Accessories cost

    Introduction

    The knitted sweater costs can be divided into several parts, namely :
    the material costs; knitting costs; and cut and make costs

    However, in the actual production, the costs are more complicated that this one. Can you name a few production costs for knitted sweater ?

    Material cost
    Yarn is the material cost for knitting. The yarn can be divided into grey yarn and dyed yarn. Different kind of yarns (says cotton or woollen) will bear a significant different in yarn cost. In addition, the knitted yarn for sweater will be blended into 2, or 3 or 5 plyed yarn before knitting. This additional process will increase the material cost in knitting. In short the costs are :

    grey yarn + dyeing costs + winding and blending costs = knitting material cost

    Material cost (II)


    For example, the cotton yarn for dyed material is about HK$20/lb for 20/2 cotton. A pullover, 5-7 gauge middle size plain stitch sweater will take about 13-15 lbs of yarn /dozen.

    Ie. Material cost per dozen sweater is HK$300

    Please name the factors for affecting the material consumption of knitted sweater and suggest possible way to determine/calculate the yarn consumption of a knitted sweater.

    Knitting cost
    The knitting cost involves the cost of the knitting machine, the knitter wages and running cost of the factory. Modern V-bed machine can produce roughly SIX dozen sweaters per day (explain what factors affecting the knitting production). If each knitting factory has to cover $1,200 per day (both the machine cost and knitter cost), the minimum knitting cost for a sweater is therefore, $200 per dozen.

    Linking/Inspection/Washing cost

    This is approximately HK$100/dozen for a pullover sweater

    Accessories

    This will mean handtag, cartoon box and package cost. It is rougly HK$20-30/dozen What other cost we have to consider for sweater ?

    Summary
    ITEM Cost Material Knitting Cost per dozen sweater $300 $200

    Linking/Washing $100 Accessories Total $30 $630 per dozen

    On top of that, you have to add PROFIT and Quota. The quota cost can be ZERO to over 1,000 per dozen

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