Yes, we’re recommending that you use Book 1, Lessons 1–71 for transcription in third grade (or so) in order to make a smooth and gradual transition into dictation at fourth grade (ish). Be sure to read the description at the top of page 62 in the Using Language Well teacher book; it will explain that gradual process. This blog post also gives an overview of the natural progression.
I would suggest transcribing the passage once with full attention and best effort.