A costing sheet is a promise: if the numbers are wrong, the factory either loses the order or loses money on it. A good FOB costing is built from parts you can check.
The parts of an FOB price
Formula: FOB = fabric + trims + CM + washing/printing/embroidery + testing & commercial + profit (+ buying commission if any)
1. Fabric cost Fabric per dozen (kg or yards, including wastage) × price per kg/yard ÷ 12 = fabric cost per piece.
2. Trims and packing Sum of every BOM item per piece: thread, labels, hangtags, buttons, zippers, poly bag, carton share, tissue, stickers.
3. CM (cut and make)
Formula: CM per piece = SAM × cost per minute
Cost per minute = factory monthly cost (wages, overheads, utilities, depreciation) ÷ produced minutes per month at your expected efficiency.
4. Washing / printing / embroidery - from the supplier's or in-house department quote.
