Do period costs include depreciation expense if it's from equipment? The question I'm working asks:

What was the period cost incurred for the month of December?

My answer is $4,200. I included advertising, salaries and wages, and depreciation expenses in the total (1600 + 2000 + 600 see below) but not sure if the $600 should be included since it was from equipment. I think it does because it was equipment used in selling and administrative activities. Can you please confirm?

This is the transaction to be recorded:

20-Dec Depreciation for the month of December was recorded on equipment was $750 ($150 for equipment used in the factory and the remainder for equipment used in selling and administrative activities).

This is how I recorded in the General Journal:

20-Dec Manufacturing Overhead $150

Depreciation Expense $600

Accumulative Depreciation $750

This is how it was recorded in the Income Statement (the $600 expense mainly for this example):

Sales

Sales Revenue $32,000.00

Less: Cost of goods sold $ 10,950.00

Gross margin $21,050.00

Selling and administrative expenses

Advertising expenses $1,600.00

Salaries and wages Expenses $2,000.00

Depreciation expenses $600.00

Total expenses $4,200.00

Net operating income $16,850.00