E5-8. C ost of production report; addit ion of material. Marks Inc. produces a cologne, Mi Esencia, which s. In the third department, materials are added, doubling the requires processing in three department mber of units. The following data pertain to the operations of Depatment 3 for March 20,000 32,000 Units received from Department 2 Units transferred to finished goods storeroo The balance of the units are still in process-100% complete As to materials, 50% complete as to labor and overhead Cost transferred from Department 2... Cost added by the department $30,000 $ 8,800 Labor.. Factory Overhead.... 9,000 10,800 28,600 here was no beginning work in process inventory Required: Prepare the following (1) A cost of production report for Department 3 for March (2) The journal entry transferring cost out of Department 3