To calculate the cost of a carton in the apparel industry, you need to consider the following factors:
- Raw materials: This includes the cost of the fabric, trimmings, labels, and other materials used to produce the garment.
- Labor: This includes the cost of the workers who assemble the garment and package it into a carton.
- Overhead: This includes indirect costs such as rent, utilities, insurance, and other expenses related to running the business.
- Shipping and handling: This includes the cost of transporting the cartons from the factory to the warehouse or store.
To calculate the cost of a carton, add up the cost of the raw materials, labor, overhead, and shipping and handling. Divide this total by the number of garments in the carton to get the cost per garment. Finally, multiply the cost per garment by the number of garments in the carton to get the total cost of the carton.
Note: This is a general formula and the specific details may vary based on the company’s cost structure, production process, and location.
he Importance of Carton Costing in the Garments Industry:
Carton costing plays a crucial role in the garments merchandising process. However, it’s not as complicated as it may seem. This article provides a straightforward method for calculating carton costings in the apparel industry.
Carton Costing Calculation Method:
Before calculating carton costing, a garments merchandiser must first confirm the following details:
- Carton length in centimeters
- Carton width in centimeters
- Carton height in centimeters
To calculate the carton cost, the merchandiser must determine the plyboard consumption for the carton box and multiply it by the plyboard rate.
Formula: Carton Cost (per piece carton box) = Plyboard Consumption (per piece carton in square meter) x Plyboard Rate (per square meter)
Example: To illustrate the calculation method, consider a 5-ply carton with a length of 65cm, width of 45cm, and height of 12cm. Calculate the carton box cost for 400 pieces of the carton box, with a 5 plyboard rate of $0.65 per square meter.
Solution: The plyboard consumption per piece of carton box would be 1.41 square meters.
From the formula, the carton cost per piece would be: Carton Cost = 1.41 x 0.65 = $0.92 per piece carton box
Therefore, for 400 pieces of carton, the total carton cost would be: 400 x $0.92 = $368.
In conclusion, this article provides a clear understanding of how to calculate carton costing in the garments industry. If you have read this article carefully, you will be able to answer related questions during an interview.
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