The Cost and Funding Studies project of the proposed Western Interstate Bibliographic Network began activities in July 1975. The goals of the project were to: (1) determine representative costs of present library services in the West, (2) estimate future costs of library services in the West with proposed network support, (3) evaluate and compare the impact of a network on costs of library services, and (4) examine equitable programs of financial support for the proposed network. The second quarter of the project was devoted to project planning, design, and development of data collection intervention strategies. Major achievements during the quarter included completion of a pretest in Idaho and establishment of sampling procedures. Progress was made in designing the data collection instrument for the survey of costs in technical processing and interlibrary loan. The appendices which form the bulk of this report, include a revised schedule for the project, flowcharts of general processing, and a financial report. (Author/KP)