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Costs | 12 Months Ended
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Dec. 31, 2020
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Costs |
24. | COSTS
|  | 2020 |  |  | 2019 |  |  | 2018 |
Inventories at beginning of year |  |  | 80,479 |  |  |  | 53,324 |  |  |  | 27,149 |
Purchases |  |  | 170,616 |  |  |  | 190,601 |  |  |  | 124,279 |
Production costs (1) |  |  | 442,264 |  |  |  | 378,281 |  |  |  | 234,340 |
Translation effect |  |  | 32,427 |  |  |  | 33,385 |  |  |  | 26,514 |
Inventories incorporated by business combination (2) |  |  | — |  |  |  | — |  |  |  | 445 |
Adjustment for inflation (3) |  |  | 563 |  |  |  | 496 |  |  |  | 167 |
Inventories at end of the year |  |  | (100,137 | ) |  |  | (80,479 | ) |  |  | (53,324 | )
|  |  | 626,212 |  |  |  | 575,608 |  |  |  | 359,570 |
(1) | See Note 25.
(2) | See Note 3.
(3) | Corresponds to adjustment for inflation of inventories’ opening balances of subsidiaries with the Peso as functional currency, which was charged to other comprehensive income.

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