textile industry

1. CIA-3
COST ACCOUNTING
Process costing of a small unit of textile industry
YASH NIRMALE
1723042
SANSKRITI BHATNAGAR
1723072
HARSHITH VENKAT
1723013
SURANGANA N
1723075
VAIDEHI M DHULEKAR
1723078

2. Process costing in the textile industry
Following are the major process in the textile manufacturing industry
1. Spinning - Spinning is a process of making or converting fiber materials into yarns. Since few
centuries ago, spinning have been known as a process of converting raw materials (fiber) such as cotton
and wool into yarns for making textile fabric or products.
Fibres cannot be used to make clothes in their raw form. For this purpose, they must be converted
into yarns. The process used for yarn formation is spinning. Drawing pulls the staple lengthwise
over each other. As a result longer and thinner slivers are produced.
After several stages of drawing out, the sliver is passed to the spindles where it is given its first twist and
is then wound on bobbins. 'Roving' is the final product of the several drawing-out operations. It is the
preparatory stage for the final insertion of twist. Till now, enough twist is given for holding the fibers
together but it has no tensile strength. It can break apart easily with a slight pull.
2. Weaving - Weaving is a method of fabric production in which two distinct sets of yarns or
threads are interlaced at right angles to form a fabric or cloth.
Cloth is usually woven on a loom, a device that holds the warp threads in place while filling threads
are woven through them. A fabric band which meets this definition of cloth (warp threads with a weft
thread winding between) can also be made using other methods, including tablet weaving, back-strap,
or other techniques without looms.
The way the warp and filling threads interlace with each other is called the weave. The majority of
woven products are created with one of three basic weaves: plain weave, satin weave, or twill.
Woven cloth can be plain (in one colour or a simple pattern), or can be woven in decorative or
artistic designs.
In order to interlace the warp and weft yarn, there are three operations which often called primary
motions are necessary:
 Shedding- The process of separating the warp yarn into two layers by raising the harness
to form an open area between two sets of warps and known as shed.
 Picking- The process of inserting the filling yarn through the shed by the means of the
shuttle less while the shed is opening.
 Beating- The process of pushing the filling yarn into the already woven fabric at a point
known as the fell and done by the reed.
3. Dyeing & Printing - Dyeing is the process of adding colour to textile products like fibres, yarns,
and fabrics. Dyeing is normally done in a special solution containing dyes and particular chemical
material. After dyeing, dye molecules have uncut chemical
bond with fibre molecules. The temperature and time controlling are two key factors in dyeing.The
common dyeing process of cotton yarn with reactive dyes at package form is as follows:
1. The raw yarn is wound on a spring tube to achieve a package suitable for dye
penetration.
2. These softened packages are loaded on a dyeing carrier's spindle one on another.

3. 3. The packages are pressed up to a desired height to achieve suitable density of packing.
4. After dyeing, the packages are unloaded from the carrier into a trolley.
5. The packages are then dried to achieve the final dyed package.
Textile printing is the process of applying color to fabric in definite patterns or designs. In properly
printed fabrics the color is bonded with the fiber, so as to resist washing and friction. In printing,
wooden blocks, stencils, engraved plates, rollers, or silk-screens can be used to place colors on the
fabric. Colorants used in printing contain dyes thickened to prevent the color from spreading by
capillary attraction beyond the limits of the pattern or design.
4. Finishing - In textile manufacturing, Finishing refers to the processes that convert the woven or
knitted cloth into a usable material and more specifically to any process performed after dyeing the
yarn or fabric to improve the look, performance, or "hand" (feel) of the finished textile orclothing.
Some finishing techniques such as bleaching and dyeing are applied to yarn before it is woven while
others are applied to the grey cloth directly after it is woven or knitted. Some finishing techniques,
such as filling, have been in use with hand-weaving for centuries; others, such as mercerization, are
by-products of the Industrial Revolution.
All the information is gathered through a telephonic interview from Mr.Sarthak Awasthy( Assistant
manager) in Lakshmi Textiles

4. Process No.1 A/c(spinning and weaving )
Process No.2 A/c(Dyeing & Printing)
Particulars Unit Amount Particulars Units Amount
To Process 1
A/c.
4750 1362500 By normal loss A/c
(@ 320)
1500 480000
To expenses 300000 By Process No.2
A/c.
3000 1182500
4500 1662500 4500 1662500
Process No. 3A/c (Finishing)
Particulars Unit Amount Particulars Units Amount
To Process 2
Stock A/c.
3000 1662500 By normal loss
A/c(@50)
300 15000
To Expenses 18550 By abnormal loss A/c 700 441050
To Wages 35000 By Process 3 Stock
A/c.
2000 1260000
3000 1716050 3000 1716050
Particulars Unit Amount Particulars Units Amount
To Material @
Rs.1000
5000 5000000 By Normal Loss
(sale of Scrap @50)
250 12500
To Expenses 162500 By Process 1 Stock
A/c. (@ 284 per ton)
4750 1350000
To Wages 200000
5000 1362500 5000 1362500

5. Normal loss A/C
particular unit amount particular unit amount
To process 1(@50) 250 12500
By cash
(sales) 2005 507500
To process 2(@320) 1500 480000
To process 3(@50) 300 15000
2005 507500 2005 507500
Abnormal loss A/c
Particular unit amount particular unit amount
To process 3 A/c 700 441050
By sale of scrap
a/c 700 35000
By p and l
costing 406050
441050 441050
P/L Costing A/c
Particular unit amount particular unit amount
To process 3 a/c 1260000
By
sales(@1300) 2000 2600000
To abnormal loss
a/c 406050
To Management
Expenses
52500
To Selling
Expenses
40000
To Interest on
Capital
10000
To net profit 831450
2600000 2600000

6. Conclusion
 Process costing is used in situations where homogeneous products or services are produced
on a continuous basis.
 To compute unit costs in a department, the department's output in terms of equivalent
units must be determined.
 The scope of its business includes yarn dyeing, weaving, wovenfabric
Processing, knit processing, finishing and designing with state-of-the-art infrastructure.
 This company is operational from the year 1993.
 Raw materials used include cotton, silk, wool, flax, polyester, dyes, chemicals and auxiliaries.
 The processes involve spinning, weaving, dyeing, printing and finishing.
 they have also taken a 3 years management contract on an open end spinning plant for cotton
yarn there by having better control on the quality ofyarn.