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Cost of Goods Manufacture (COGM) & Work-in-Process Calculation in Woven Garments.

Imran
COGM & WIP

WIP Calculation in Woven garments

Cost of goods manufacture (COGM) * Work-in-Process is an important tool for calculating total inventory in woven garments. It’s a demandable calculation for another stack holder. One of these stack holder banks is the vital role of this inventory report. Because the bank is aware of distributing his limit loan depended on that report.

The below table is for your information to calculate the cost of goods manufacture of finished goods.

Jun-21ParticularsValueQty.Production. Qty.WIP Calculation: 
 Materials (Fabric+Trims)      868,547  Opening Fabric        59,673
 WIP        40,630      28,211    240,557Fabric Issue to Cutting-     195,657
 Finished Goods        43,455      16,893 Fabric Use for Production-     228,529
     Closing Balance        26,801
     Equivalent WIP Qty.        28,211
       
WIP
Quantity        28,211
Material        26,801
Factory Over Head (FOH)        27,658
Allocation FOH        13,829
WIP valuation        40,630
Final Inventory Calculation
As of 30 Jun-2021
Finished Goods Report
BuyerOpening Qty.Received  Qty.Total StockEx-Factory Qty.Ex. Fac. In %Closing Balance Qty.Closing %
Gorge         2,316            1,802         4,118          4,1182%                      –  0%
Debenhams                –              1,833         1,833          1,8331%                      –  0%
Tesco         4,173          26,916      31,089        28,93512%               2,15413%
H&M      78,714        102,035    180,749     170,15272%             10,59763%
Li & Fung                –              2,390         2,390                 –  0%               2,39014%
Zara                –                  752            752                 –  0%                   7524%
Pull & Bear         7,450          25,189      32,639        31,63913%               1,0006%
Total      92,653        160,917    253,570     236,677100%             16,893100%
ParticularsQty. COGM USDRate
Opeing      92,653        170,253           1.84
Add. Received    160,917        482,021           3.00
Less: Ex-Factory    236,677        608,819           2.57
Closing       16,893          43,455           2.57
COGM Calculation
FOB/Pcs D. Mat. & Emb. % Total FOB D. Mat. & Emb.  Fact. OH  COGM  Man Hr./pcs  Man Hour 
        5.8656%      10,554         5,950         2,114         8,065      0.66          1,188
        2.9951%         5,475         2,800            969         3,769      0.30              544
        4.6059%    123,814       72,535      79,816    152,352      1.67        44,841
        1.2044%    122,897       54,091      73,728    127,819      0.41        41,420
        2.5842%         6,160         2,606         3,922         6,528      0.92          2,204
        5.3971%         4,053         2,886         1,378         4,264      1.03              774
        7.1677%    180,438     138,625      40,600    179,225      0.91        22,809
      26.8457%    453,390     279,495    202,527    482,021      0.84     113,779
COGM Cost of Goods Manufacture

If you didn’t understand the above calculation for COGM & WIP in woven garments, Please watch the below video.

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