Cost Calculation in Mercerisation Process

What is Mercerization Process?
Mercerisation is an optional process but it is performed on the cotton fabric to improve the feel and aesthetic look. The benefits imparted to cotton by mercerization include a silk-like luster and increased strength, moisture absorbency, color yield after dyeing, and reactivity. In this process, the fabrics are treated with concentrated alkali and are allowed to be in the storage for a minimum time. This process allows the alkali to diffuse into the fibre and improve the fibre quality. Finally, the alkali was washed off and neutralised in the subsequent washers. This process can be performed after bleaching or at the grey stage itself but only after the singeing process. This article provides a comprehensive breakdown of the factors influencing the cost calculation of mercerisation and offers a systematic approach to calculate them effectively.

Flow Chart of Mercerisation Process:
The simple process flow of the fabric in the mercerisation machine is provided below.

Bleached fabric as a feed material

↓

Impregnation in concentrated alkali

↓

Cooling and reaction zone after padding

↓

Stenter zone to avoid shrinkage

↓

Stabilising and washing zones

↓

Fabric neutralising zone

↓

Washing and drying zone

↓

Fabric plaiting zone

Alkali is the main chemical used in the mercerisation process along with a very small amount of wetting agent. After washing, in neutralisation process, acids are used commonly to achieve the final pH. In this process, the following are noted as the factors which affect the cost calculation of mercerisation process:

Factors Influencing in Cost Calculation of Mercerisation Process:
Materials cost is one of the most significant factors in the mercerization process. Other factors are point out below.

1. Machine production capacity
2. Raw material cost (chemicals)
3. Labour cost
4. Steam cost (used in steam drying cylinders)
5. Factory efficiency
6. Electricity cost
7. Water cost
8. Other overhead expenses

The following examples will detail the method of calculation the cost of mercerisation process.

Example 1.
A dyeing and bleaching unit received a job order to perform the mercerisation alone for a bleached fabric. The order quantity of the job is 8,500 kg of fabric. The manufacturer uses one continuous mercerising range with a production capacity of 750kg/shift. In this process, the manufacturer plans to use 3 machine operators and 2 helpers to run the machine with a wage of Tk.850 and Tk.710/shift respectively. The raw material consumed for the order is listed in Table 1.

The other expenses associated with the process are listed as follows.

1. Caustic recovery plant expense – Tk.30,000/month
2. Electricity cost – Tk.10,000/month
3. Other staff salary –Tk.42,000/month
4. Steam expenses (firewood) – Tk.12,000/month
5. Machine maintenance – Tk.15,000/month
6. Miscellaneous –Tk.29,000/month

Table 1: Raw material consumption details

Calculate the cost of mercerisation process with a 20% profit of the factory works 2 shifts per day and 30 days in a month.

Solution:

Step 1: Number of shifts required

The total production needs to be done = 8,500 kg

Daily production of the company = 750 kg/shift/machine

………………………………………………..Order quantity
Hence, the total shifts required = ———————————-
……………………………….. …………….Daily production

….8,500
= ————–
…..750

= 11.33 shifts

Company works two shifts per day.

Hence, total days = 5.67 days

Step 2: Labour cost
To complete the order, the machine is operated by 3 operators and 2 helpers with a wage of Tk.850 and Tk. 710 per shift.

Hence, the total labour cost is

= (Number of labours × Total working shifts × Wages per shift)
= (3 × 11.33 × 850) + (2 × 11.33 × 710)
= Tk.28,891.5 + Tk.16,088.6
= Tk. 44,980.1

Total Labour cost = Tk. 44,980.1
= 374.83 USD   [1 USD = 120 Taka]

Step 3: Calculation of raw material cost

The raw material cost details of Example 1

Step 4: Overhead cost

1. Caustic recovery plant expense – Tk.30,000/month
2. Electricity cost – Tk.10,000/month
3. Other staff salary – Tk.42,000/month
4. Steam expenses (firewood) – Tk.12,000/month
5. Machine maintenance – Tk.15,000/month
6. Miscellaneous –Tk.29,000/month

Total overhead cost = Tk. 1,38,000

Company works for this order only 5.67 days.

………………………1,38,000
Overhead/day = ——————
………………………….30

= Tk. 4,600

Therefore, Tk.4,600 × 5.67
= Tk. 26,082
= 217.35 USD   [1 USD = 120 Taka]

Step 5: Total cost of the mercerisation

Total cost = Labour cost + Material cost + Overheads
= Tk. 44,980.1 + Tk. 64,480 + Tk. 26,082
= Tk. 1,35,542.1
= 1129.5175 USD   [1 USD = 120 Taka]

…………………………………………….1,35,542.1
Total mercerisation cost / Kg = ———————
……………………………………………….8500

= Tk. 15.95
= 0.13 USD     [1 USD = 120 Taka]

Profit 20% = Tk. 15.95 + {Tk. 15.95 × 0.20}
= Tk. 19.14
= 0.1595 USD    [1 USD = 120 Taka]

Example 2:
A textile chemical processing unit mercerised 12,500 kg of knitted cotton fabric with two mercerisation range. The average production capacity of the range is 575 kg/ day /machine. The factory uses 2 machines for production. The factory works with 2 machine operators and 4 helpers with a wage of Tk.780 and Tk.650/shift. The raw material sourced for the order and their prices are listed in Table 2.

Table 2: Raw material consumption details

Calculate the process cost per kg with 5% profit if the factory works 2 shifts per day. The general overhead expenses are noted as Tk.1,00,000/ month of 30 days.

Solution:

Step 1: Number of shifts required

The total production needs to be done = 12,500 kg

Daily production of the company = 1,150 kg/shift/machine

Total production/day = 575 kg × 2 = 1,150 kg

…………………………………………………Order quantity
Hence, the total shifts required = ———————————-
………………………………………………Daily production

….12,500
= ——————-
…..1,150

= 10.87 days

Step 2: Labour cost
To complete the order, the machine operated by 2 operators and 4 helpers with a wage of Tk.780 and Tk. 650 per shift.

Hence, the total labour cost is
= (Number of labours × Total working shifts × Wages per shift)
= (2 × 21.74 × 780) + (4 × 21.74 × 650)
= Tk. 33,914.4 + Tk. 56,524
= Tk. 90,438.4

Total Labour cost = Tk. 90,438.4

Step 3: Calculation of raw material cost  

Raw material expense details of Example 2

Step 4: Overhead cost

Total overhead cost = Tk. 1,00,000

Company works for this order only 10.87 days.

………………………100,000
Overhead/day = ———————
…………………………30

= Tk. 3333.33

Therefore, Tk.3,333.33 × 10.87 = Tk. 36,233.297

Step 5: Total cost of the mercerisation

Total cost = Labour cost + Material cost + Overheads
= Tk. 90,438.4 + Tk.52,500+ Tk. 36,233.297
= Tk. 1,79,171.697

…………………………………………..1,79,171.697
Total mercerisation cost / Kg = ——————–
……………………………………………..12,500

= Tk. 14.33

Profit 5% = Tk. 14.33 + {Tk. 14.33 × 0.05} = Tk. 15.05

Conclusion:
Mercerization is a crucial textile finishing process that enhances the strength, luster, dye affinity, and overall quality of cotton fabrics and yarns. This process helps to make fabrics more suitable for high-end textiles, garments, and home furnishing applications. Besides, some buyers demand for mercerization finish. So costing of mercerization is important for profit margin. Cost calculation in the mercerisation process involves evaluating material, chemical, utility, labor, machine, and overhead expenses to determine the total production cost. This helps identify cost drivers, optimize resource usage, and ensure competitive pricing while maintaining quality. Proper cost estimation supports efficient operations, sustainable practices, and profitability, enabling informed decision-making in textile production.

References:

1. Rathinamoorthy, R., Surjit, R., & Vardhini, K. J. V. (2024). Handbook of Textile and Apparel Costing. https://doi.org/10.1201/9781032629896
2. Rathinamoorthy, R., & Surjit, R. (2017). Apparel Merchandising. In WPI Publishing eBooks. https://doi.org/10.1201/9780429505737
3. Sinclair, R. (2015). Textiles and fashion : materials, design and technology. In Woodhead Publishing

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