Cost of Goods Sold Inventory is the total value of all inventories that were used during the production and sale of goods in a particular period, typically represented as an itemized expense on a company’s financial statement. This cost reflects the materials, labor, and overhead associated with bringing a product or service to a point where it can be sold to customers. By calculating the Cost of Goods Sold Inventory, companies can gain important insights into their performance and overall profitability.