Page 103 - CTS - Dress Making - TP - Volume - 1

DRESS MAKING - CITS

3 Calculate Costs
- Calculate the cost of raw materials per unit based on the quantity required for production and their
respective prices.
- Determine direct labor costs per unit based on the number of labor hours required and the wage rate.
- Allocate overhead costs to each unit produced, either based on a predetermined overhead rate or through
allocation methods specified in the specifications.
4 Ensure Accuracy
- Double-check all calculations to ensure accuracy.

- Verify that all costs are accounted for and nothing is omitted.
5 Check Compliance with Specifications
- Review the specifications provided to ensure that the cost sheet meets all requirements.
- Verify that the cost sheet includes all necessary details and is presented in the required format.
- Confirm that the cost calculations align with any specific guidelines or criteria outlined in the specifications.

6 Evaluate the Cost Sheet
- Assess the overall cost structure and determine if it is competitive and feasible.
- Evaluate the profitability of the product based on the cost sheet.
- Identify any areas where costs can be optimized or reduced without compromising quality.
7 Seek Approval
- Present the cost sheet to relevant stakeholders or decision-makers for approval.
- Address any questions or concerns raised during the review process.
8 Finalize the Cost Sheet
- Make any necessary adjustments based on feedback received during the evaluation process.
- Ensure that the final version of the cost sheet accurately reflects the cost structure of the product.
9 Document and Maintain Records
- Keep a copy of the approved cost sheet for future reference.
- Maintain accurate records of cost data and any revisions made to the cost sheet over time.
By following these steps, you can prepare and evaluate a cost sheet to ensure that it meets specifications and
accurately reflects to prepare and evaluate a cost sheet and ensure it aligns with specifications, you’ll need to
follow these steps
1 Gather Information: Collect all relevant data including material costs, labor costs, overhead expenses, and
any other relevant costs associated with the production process.
2 Format the Cost Sheet: Create a standardized format for the cost sheet. Typically, a cost sheet includes
sections for direct materials, direct labor, manufacturing overhead, and total costs.
3 Calculate Direct Material Costs: Sum up the costs of all materials used in the production process. This may
involve looking at purchase invoices or material requisition forms.
4 Calculate Direct Labor Costs: Determine the labor costs associated with production. This could include
wages, salaries, benefits, and payroll taxes for workers directly involved in manufacturing.
5 Compute Manufacturing Overhead: Manufacturing overhead includes indirect costs such as rent, utilities,
equipment depreciation, and maintenance. Allocate these costs to the production process based on
predetermined allocation methods.
6 Summarize Total Costs: Total up the costs from direct materials, direct labor, and manufacturing overhead to
arrive at the total production cost.
7 Check Against Specifications: Ensure that the costs align with the specifications provided. This could
involve checking that the materials used meet quality standards and that the labor costs are within budgetary
constraints.

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CITS : Apparel - Dress Making - Exercise 32