Yes, knit the bind off at the beginning of the first row and purl at the start of the second row. Just straight knitting and purling without the first yo’s, the skp or the p2tog. On row 2, you’ll have to give up the second yo and the next p2tog because you’ll need to purl 8sts in order to bind off 7. Since you’ll skip the second yo, you should also skip the second p2tog in order to keep the stitch count correct.
Binding off is the lifting one stitch over the other, you work the other stitches in pattern, they’re just done one at a time. With a knit purl st combination, if you BO in all knit and all purl sts, it can cause the BO to flare out a little, even just over 7 sts. So try it in pattern first and see how it looks.