Here's a breakdown of the calculations, following the methodology in the PDF, and then I'll
present the complete cost sheet.
1. Material Consumption
Fabric:
o To calculate fabric consumption, we need an estimate of how much fabric is
used per vest. Since you've provided the fabric width (45 inches), we need to
estimate the length required. This is where a sketch with dimensions would be
very helpful.
o Assumption: Let's assume that after laying out the pattern pieces efficiently,
each vest requires 0.75 meters of fabric. (This is an assumption, and the actual
consumption may vary. A technical drawing would help to calculate this more
precisely).
o Fabric consumption per vest: 0.75 meters
o Total fabric consumption for 1000 vests: 0.75 meters/vest * 1000 vests = 750
meters
o Fabric wastage: 750 meters * 0.05 = 37.5 meters
o Total fabric required: 750 meters + 37.5 meters = 787.5 meters
Thread:
o You've provided thread consumption as 100-150 meters per kg. To be safe,
let's take the higher value.
o Assumption: Let's assume we use 150 meters of thread per vest.
o Total thread consumption: 150 meters/vest * 1000 vests = 150,000 meters
o Thread wastage: 150,000 meters * 0.02 = 3,000 meters
o Total thread required: 150,000 meters + 3,000 meters = 153,000 meters
o Thread consumption in kg: 153,000 meters / 1000 meters/kg = 153 kg (since
your thread price is per kg)
Labels:
o Label consumption: 1 label per vest * 1000 vests = 1000 labels
2. Material Costs
Fabric cost: 787.5 meters * ₹200/meter = ₹157,500
Thread cost: 153 kg * ₹250/kg = ₹38,250
Label cost: 1000 labels * ₹2/label = ₹2,000
Total Direct Material Cost: ₹157,500 + ₹38,250 + ₹2,000 = ₹197,750
3. Labor Costs
We'll use the labor rate from the PDF: ₹0.9375 per minute.
To calculate total labor cost, we need the total SAM (Standard Allowed Minutes) for
making one vest and then multiply it by the number of vests.
Assumption: Let's assume the total SAM for making one vest is 20 minutes. (This is
an assumption. An operation breakdown would be needed for a precise SAM).
Total labor minutes: 20 minutes/vest * 1000 vests = 20,000 minutes
Total labor cost: 20,000 minutes * ₹0.9375/minute = ₹18,750
4. Overhead Costs
Overhead is 10% of direct labor cost.
Total overhead cost: 0.10 * ₹18,750 = ₹1,875
5. Total Production Cost
Total production cost = Direct material cost + Direct labor cost + Overhead cost
Total production cost = ₹197,750 + ₹18,750 + ₹1,875 = ₹218,375
6. Profit Margin and Selling Price
Profit margin: 40%
Profit amount: ₹218,375 * 0.40 = ₹87,350
Selling price for 1000 vests: ₹218,375 + ₹87,350 = ₹305,725
Selling price per vest: ₹305,725 / 1000 vests = ₹305.73
