The Cost of Goods Sold Balance Sheet is a financial statement that records the cost incurred to produce products that are sold by a business. It includes all direct costs associated with producing and selling your goods, such as raw materials, labor, taxes, and freight. By recording these costs in a balance sheet, it provides businesses with an accurate picture of their production and sales process and allows them to make informed decisions about pricing and inventory levels. With this knowledge, companies can then plan more effectively for the future of their business.