Wet-Spun and Dry-Spun Counts Priced per Kilo at Chinese Spinners
Wet-spun flax yarn commands higher per-kilo pricing due to hackling loss, while dry-spun tow yarn offers cost efficiency for counts under twenty metric.
Spinning Cost Allocation
Financial Distribution
Overhead and direct expenses incurred during the manufacturing process must be distributed among the diverse yarn grades produced from the same raw material. This method of spinning cost allocation allows linen mills to assign costs to line yarn and tow yarn based on their relative weight and processing time. Because both yarn types originate from the same raw flax straw, a precise division is necessary to determine the profitability of each product line.
The allocation formula typically combines machine hours and labor hours. It ensures that the high-value line yarn absorbs a proportionate share of the scutching and preparation costs.
Operational Metric
Labor hours on the hackling and wet spinning frames are tracked through daily production logs to ensure accurate accounting. In Chinese flax mills, the higher complexity of spinning fine line yarn requires a larger share of the energy and labor cost. This systematic tracking ensures that each batch of yarn is priced to cover its true production expenses.
Product Valuation
Inventory valuation and financial reporting depend on the consistency of these cost distribution methods. When raw material costs fluctuate, the allocated expenses for each grade must be updated to prevent distortion in the gross margin calculations. This internal cost auditing is required to maintain financial control in competitive export markets.