Step 1: Gather your materials. In this case we used 1/2 yard each of red and green Hawaiian floral fabric and 1 yard of navy blue fabric (for the trim and backing). Using a less expensive solid backing is cost effective but doesn't compromise the look you're going for. You'll also need a rotary cutter, self-healing mat, ruler, sewing machine and thread.
Step 2: Print out a template in the size and shape of your favors (like this stocking one from Martha Stewart) or draw your own. Trace enough shapes for a front and a back for each favor. We made 16 stockings so there were 8 of each color for the front and 16 navy blue for the back.
Step 4: Pin the fold to the wrong side of the fabric (align it with the top) and sew approximately 1/8-1/4 inch seam just along the top side.
Step 5: Now flip the blue over so that it is now on top of the pattern and pin the backing to the stocking so that the flap and the right side of the fabric are sandwiched in the middle.
Step 6: Stitch along the edge of the stocking (see in the picture how the fabric is wrong-side out) but DO NOT stitch along the top, otherwise your stocking will be sewn closed.
Step 7: Trim any excess edge.