The normal balance of cost of goods sold (COGS) is a debit balance.
Cost of goods sold represents the direct costs of producing the goods that a company sells during a specific period. This includes costs for materials, labor, and any other expenses directly tied to the creation of the products. In accounting, expenses generally carry a debit balance.
When a sale occurs, the cost associated with that sale is recorded as a debit to COGS, which reflects the reduction in inventory and the cost incurred to generate revenue. Since COGS is classified as an expense on the income statement, its normal balance is debited, while revenues would carry a credit balance. Therefore, any increase in COGS (due to purchases or production costs) would be recorded as a debit, aligning with the standard accounting practices.