Instructables
My children came up with this all by themselves, mostly the older one.  She is VERY creative.  You will see I have credited her in all of my instructables.  :)
 
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Step 1: Cut up the Sock

Picture of Cut up the Sock
Cut sock into 3 pieces.  Cut off toe and cut just above heel. 

Step 3: Top band goes on as Barbie's Shirt

Put Barbie's hands up and put on shirt, pulling down the top section of the sock.  Make sure the finished edge goes down to her waist.  Roll up the bottom edge to make a nice accent band and make the top edge line up with her bust line.   Turn  her over and fold excess material over and secure with bobby pin.  You  could sew this if you wanted it to be finished but my girls only leave clothes on Barbie for .01238569948 seconds, on average, so there was little point.  :)