Cost Of Goods Sold (COGS) includes all the costs and expenses related directly to the production of goods. It excludes indirect costs such as overhead and sales & marketing. Given: Opening inventory = Rs. 3,500,Closing inventory = Rs. 1,500, andCost of goods sold (COGS) = Rs. 22,000Solution:Formula of COGS:COGS = Opening inventory + Purchases - Closing inventory22,000 = 3,500 + Purchases - 1,50022,000 = 2,000 + PurchasesPurchases = 22,000 - 2,000Purchases = 20,000Therefore, the amount of purchase is Rs. 20,000.